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Level 3
April 19, 2022
Question

Bonus vehicle depreciation and section 179

  • April 19, 2022
  • 2 replies
  • 11 views

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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2 replies

Just-Lisa-Now-
Intuit Community Champion
April 19, 2022
Level 15
April 19, 2022

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.