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My client bought a luxury SUV (more than $150k) under the name of it's business and wants to depreciate the whole thing in the first year. Can I do that only with section 179? or there's a limit for that and when reach that point I need to switch to Bonus depreciation? This SUV above 6000 pounds depreciation is very confusing.
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Bonus is automatic
You have to make another input to get 179
Answers are easy. Questions are hard!
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Thank you, but my questions was about the Section 179 and if there's a limit for that for SUVs above 6000 pounds. Basically I want to know how to depreciate the whole amount for those cars in the first year.
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"Basically I want to know"
Did you google:
irs vehicle bonus depreciation
Don't yell at us; we're volunteers
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I think I was clear when I asked I want to depreciate the whole amount. Is there a cap for that in Section 179? if yes, how much is it? Sine I have never done this before, I'm trying to learn the process.
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You should read the reference materials so that you can see what applies in a specific tax year, because things change, or get released as draft and then get finalized. Here are some of the links, when you do that search I suggested:
https://www.irs.gov/newsroom/irs-finalizes-regulations-for-100-percent-bonus-depreciation
https://www.irs.gov/newsroom/additional-first-year-depreciation-deduction-bonus-faq
Always look at the dates, to know if it is Current.
Don't yell at us; we're volunteers
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When I started back in the dark ages, we had two free IRS pubs that contained virtually everything you need to know to get your introductory education.
IRS PUB 334 You will need to check back to get the updated 2021 edition
Bookmark these or call to get real honest to goodness paper copies to leaf through https://www.irs.gov/forms-pubs/forms-and-publications-by-us-mail
Answers are easy. Questions are hard!