The S-corp intends to acquire a new passenger vehicle valued between $25,000 and $35,000 using a loan. What potential tax deductions and/or tax credits could be applicable?
I think if it is under 6000 pounds for the first year under Section 179 it will qualify for 12,200 plus 8000 in bonus depreciation. That is assuming to be used 100 % for business and also I believe it will prorate the days when the car was placed in service. It is almost the end of the year and you said "intend" to buy. Thanks.
I think if it is under 6000 pounds for the first year under Section 179 it will qualify for 12,200 plus 8000 in bonus depreciation. That is assuming to be used 100 % for business and also I believe it will prorate the days when the car was placed in service. It is almost the end of the year and you said "intend" to buy. Thanks.
I think if it is under 6000 pounds for the first year under Section 179 it will qualify for 12,200 plus 8000 in bonus depreciation.
DANGER Will Robinson!
If the vehicle is subject to the Luxury Limits, you generally don't want to use BOTH Section 179 and Bonus. Pick one or the other. The first-year result should be the same on the Federal return if you only use one.
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