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Level 6
July 6, 2020
Question

Taking bonus depreciation along with section 179.

  • July 6, 2020
  • 2 replies
  • 32 views

Can my client, California resident, take both Section 179 and also take the bonus depreciation? 

He is self-employed and used his 2017 Toyota Camry for business in 2019 for the first time.. He is taking actual expense for the car. His section 179 allows $6500 and bonus depreciation is calculates to $3900.

Any help is appreciated.

 

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2 replies

qbteachmt
Level 15
July 6, 2020

Was the car acquired in that tax year? Or is this a personal vehicle that just got used for business for the first year, but the vehicle was already owned and was 100% personal prior to any business use by the car owner?

You need to read the IRS rules and exceptions.

Don't yell at us; we're volunteers
July 6, 2020

On the Federal return ... hypothetically, yes.  But DON'T do it.  Only take Bonus, as it should give you the full amount of what you are currently taking for 179 and Bonus combined.