Tax Guru – Ker$tetter Letter

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Bonus Depreciation – New or Used?

Posted by taxguru on November 12, 2008

Q:

Subject:  Special Bonus Dep and Section 179

Hello:

I saw on your website that used vehicles qualify for section 179 deduction, but will a used vehicle qualify for the 50% special bonus depreciation allowed under the 2008 eco stimulus package…or does it have to be a new vehicle?

Thank you

 

A:

While Section 179 deductions have always been available for business equipment that had been previously owned by unrelated parties, one of the requirements for special first year bonus depreciation has always been that it was only available for the first user of that specific asset.  So, a used vehicle will not qualify for the special bonus depreciation.

Your personal professional tax advisor should be able to give you more specific advice for your unique circumstances.

Good luck.

Kerry Kerstetter

 

Follow-Up:

Super. Great website. Thank you for your response and clarification. Best of luck to you!

 

 

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