I have a situation where a SUV > 6,000 lb. GVW was purchased in September, 2021, and used for business. They only drove 1,000 miles (90% business use), yet it seems that they can bonus depreciate/Sec 179 almost the entire purchase in 2021. What happens in future years when (if) business usage drops below the current 90%? It makes no sense to me that so much can be written off in 2021 with so little mileage driven, but I cannot find a single thing that contradicts this.
Any input/thoughts will be appreciated. Thanks.
Mike
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You'll have an issue if business use drops below 50%. Then you have to deal with Sec179 recapture.
Make sure (and get it in writing) your client understands that recapture possibility. I've explained it to clients, then when it IS time for recapture - they get upset. And they often take the return somewhere else.
(Hmmm - Maybe that's a good way to weed out some clients 🙂
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