Section 179 and my new Ford F-250
OK, I have a small business, I am a contract accountant and I am
trying to take advantage of the Section 179 by purchasing an F-250.
I was referred to this by the dealership.
I can purchase the truck for $24,500 and it weighs
past the 6,000-pound minimum. Does it sound as though this qualifies
for the Section 179? I know it's funny to get a tax question from
an accountant, but hey, I am not sure!
I think that I get a lot of questions from accountants, but they just don't admit it. So let's pretend you're a plumber since accountants don't generally tool around in F-250s.
Yes, the law still favors the purchase of disproportionately
large vehicles when it comes to depreciation deductions. While the
extremely generous days that allowed expensing of $50,000 to $75,000
sport utility vehicles are gone, there is still a more rapid write-off
for those SUVs, trucks and vans with a gross vehicle weight rating
in excess of 6,000 pounds.
In your case, you will be able to claim Section 179
expense on the entire cost of the business portion of the vehicle.
For example, if you use your truck for 80 percent business purposes,
and are otherwise eligible, you'll be able to claim $19,600. Recall
from your accounting classes that you can only claim Section 179
expense to the extent of your profit.
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