BIGPETE
Level 3
04-18-2022
08:27 PM
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if my client uses their new $90,000 2022 Denali for over 50% business use in 2021 what is the most section 179 depreciation they can take in the first year? they bought the car on 11/14/21.
they think they can write off the entire car in 2021 and yes I did file an extension for them.
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Level 15
04-18-2022
08:36 PM
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https://www.irs.gov/newsroom/tax-reform-changes-depreciation-limits-on-luxury-automobiles
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TaxGuyBill
Level 15
04-18-2022
09:10 PM
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If you use §179, I think that 179 is limited to $25,000 x business %.
But if you use Bonus, then you can use the full amount, reduced by multiplying by the business %.
Warn your client that if business percentage drops to 50% or less, there will be "recapture" of depreciation in that year.