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Tax question - vehicle
Posted on 10/23/17 at 9:30 am
Posted on 10/23/17 at 9:30 am
I am thinking about getting a new SUV. Probably 75% or more miles that I drive are for work. Considering the GVWR is greater than 6000 lbs on most SUVs I am looking at, should I use Sec 179 and take the depreciation (25k + 50% bonus depreciation)? Is leasing a better option? Is this method a red flag for audits? Any tax guys have any thoughts?
1
Posted on 10/23/17 at 10:08 am to LSUFootballLover
Do you own your own business or are you an employee?
179/bonus for SUVs has greatly leveled the tax playing field between lease and purchase.
Keep in mind it's a 5 year class life... so if you get out of the SUV before 5 years you may have some recapture issues. If you are the kind that wants new vehicles every couple of years... leasing may still make more sense... depending on your total miles driven.
Also... keep in mind that bonus drops from 50% to 40% as of 1/1/18.
179/bonus for SUVs has greatly leveled the tax playing field between lease and purchase.
Keep in mind it's a 5 year class life... so if you get out of the SUV before 5 years you may have some recapture issues. If you are the kind that wants new vehicles every couple of years... leasing may still make more sense... depending on your total miles driven.
Also... keep in mind that bonus drops from 50% to 40% as of 1/1/18.
Posted on 10/23/17 at 11:34 am to LSUFanHouston
Kind of both, I am a w-2 but am member of LLC which is income I could deduct against. I do like to change vehicles every 3-4 years. I don’t drive very many miles, All in town, less than 10k per year
Posted on 10/23/17 at 11:47 am to LSUFootballLover
quote:
Kind of both, I am a w-2 but am member of LLC which is income I could deduct against.
Which one would be the primary cause of deductible vehicle expenses?
quote:
I do like to change vehicles every 3-4 years. I don’t drive very many miles, All in town, less than 10k per year
Leasing may be a good option for you then
Posted on 10/23/17 at 12:30 pm to LSUFanHouston
quote:
Which one would be the primary cause of deductible vehicle expenses?
Both are related, my direct professional services are paid through W-2, the LLC is a company where I do business
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