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Posted on 2/14/14 at 8:41 pm to Type A
I'm gonna give you a lifeline, bro.
If you want, you can email me.
Otherwise, another lifeline is taxalmanac. Great message board for tax professionals!
In fact, bookmark tax almanac. Join the message boards.
ON ANOTHER POSITIVE NOTE: your boss should not expect you to know all of this coming out of school. In fact, you probably never heard of 179 deducts. Don't worry, it's a learning process. Part of hiring a newb is teaching him.
ETA: Mcneese looks to be spot on. I'd do that, then take it to the partner for review. Also remember, you're not limited to 25k for the following business vehicles.
Equipped with a cargo area (either open or enclosed by a cap) of at least six feet in interior length that is not readily accessible from the passenger compartment, or
If you want, you can email me.
Otherwise, another lifeline is taxalmanac. Great message board for tax professionals!
In fact, bookmark tax almanac. Join the message boards. ON ANOTHER POSITIVE NOTE: your boss should not expect you to know all of this coming out of school. In fact, you probably never heard of 179 deducts. Don't worry, it's a learning process. Part of hiring a newb is teaching him.
ETA: Mcneese looks to be spot on. I'd do that, then take it to the partner for review. Also remember, you're not limited to 25k for the following business vehicles.
Equipped with a cargo area (either open or enclosed by a cap) of at least six feet in interior length that is not readily accessible from the passenger compartment, or
This post was edited on 2/14/14 at 8:49 pm
Posted on 2/14/14 at 8:47 pm to TheOcean
Whoops. Posted my thank you post from a different computer that I didn't realize was logged in under his name. I'm a girl, btw.
Posted on 2/14/14 at 8:47 pm to highcotton2
LINK
Depreciation
A truck, van, or SUV with a gross (loaded) vehicle weight rating (GVWR) over 6,000 pounds is not subject to the “luxury auto” depreciation limits. For most taxpayers, these vehicles will be considered 5-year “MACRS” property for tax depreciation, and the cost will be deductible according to this schedule:
Section 179 expensing on SUVs
5-year property is actually depreciated over 6 years because the IRS only allows partial depreciation in the first year.
The above percentages are based on the “half-year” convention. If your fixed asset purchases were heavier in your 4th quarter, the “mid-quarter” convention (and different percentages) might apply.
Depreciation is reduced by the percentage of personal use of the vehicle. Commuting is considered personal use.
Vehicles used less than 50% for business purposes use different depreciation methods.
The Section 179 expense deduction on SUVs is limited to $25,000. For this purpose an SUV is defined as any 4-wheel vehicle that is:
Primarily designed to carry passengers over public roads, and
Has a gross vehicle weight rating over 6,000 pounds and no more than 14,000 pounds.
An SUV does not include any vehicle that:
Is designed to have a seating capacity of more than nine persons behind the driver’s seat, or
Is equipped with a cargo area of at least six feet in interior length that is not readily accessible from the passenger compartment.
The general Section 179 limitations also apply.
Section 179 expensing on heavy trucks
For vehicles over 6,000 pounds GVWR which do not fall under the definition of SUV above, the full cost of the vehicle can be expensed under Section 179, subject to the general Section 179 limitations.
Bonus depreciation
50% bonus depreciation can be taken on SUVs and heavy trucks, subject to the general bonus depreciation rules.
Example
ABC Company, a calendar-year taxpayer, purchases a new vehicle for $45,000 and places it in service in July, 2013. The vehicle’s GVWR is over 6,000 pounds and it meets the definition of SUV. ABC has taxable income of $50,000 in 2013.
The total deduction in 2013 for the vehicle is $37,000:
Section 179 expense of $25,000, plus
Bonus depreciation of $10,000 ($45,000 - $25,000 Sec. 179 = $20,000 X 50% = $10,000)
Regular depreciation $2,000 (($45,000 - $25,000 Sec. 179 - $10,000 bonus = $10,000 X 20% = $2,
Depreciation
A truck, van, or SUV with a gross (loaded) vehicle weight rating (GVWR) over 6,000 pounds is not subject to the “luxury auto” depreciation limits. For most taxpayers, these vehicles will be considered 5-year “MACRS” property for tax depreciation, and the cost will be deductible according to this schedule:
Section 179 expensing on SUVs
5-year property is actually depreciated over 6 years because the IRS only allows partial depreciation in the first year.
The above percentages are based on the “half-year” convention. If your fixed asset purchases were heavier in your 4th quarter, the “mid-quarter” convention (and different percentages) might apply.
Depreciation is reduced by the percentage of personal use of the vehicle. Commuting is considered personal use.
Vehicles used less than 50% for business purposes use different depreciation methods.
The Section 179 expense deduction on SUVs is limited to $25,000. For this purpose an SUV is defined as any 4-wheel vehicle that is:
Primarily designed to carry passengers over public roads, and
Has a gross vehicle weight rating over 6,000 pounds and no more than 14,000 pounds.
An SUV does not include any vehicle that:
Is designed to have a seating capacity of more than nine persons behind the driver’s seat, or
Is equipped with a cargo area of at least six feet in interior length that is not readily accessible from the passenger compartment.
The general Section 179 limitations also apply.
Section 179 expensing on heavy trucks
For vehicles over 6,000 pounds GVWR which do not fall under the definition of SUV above, the full cost of the vehicle can be expensed under Section 179, subject to the general Section 179 limitations.
Bonus depreciation
50% bonus depreciation can be taken on SUVs and heavy trucks, subject to the general bonus depreciation rules.
Example
ABC Company, a calendar-year taxpayer, purchases a new vehicle for $45,000 and places it in service in July, 2013. The vehicle’s GVWR is over 6,000 pounds and it meets the definition of SUV. ABC has taxable income of $50,000 in 2013.
The total deduction in 2013 for the vehicle is $37,000:
Section 179 expense of $25,000, plus
Bonus depreciation of $10,000 ($45,000 - $25,000 Sec. 179 = $20,000 X 50% = $10,000)
Regular depreciation $2,000 (($45,000 - $25,000 Sec. 179 - $10,000 bonus = $10,000 X 20% = $2,
Posted on 2/14/14 at 8:49 pm to McNeeseLSU
I think his main concern is that it is a truck, and probably has a large cargo area.
Posted on 2/14/14 at 8:59 pm to Type A
I'm assuming this is a very small firm you work for? Find employment with a larger firm that has the bodies to help mentor you some. I graduated from LSU having only heard if 179 a small handful of times.
This post was edited on 2/14/14 at 9:06 pm
Posted on 2/14/14 at 9:00 pm to McNeeseLSU
quote:
New Accountant Needs Help: § 179 Depreciation Deduction LINK Depreciation A truck, van, or SUV with a gross (loaded) vehicle weight rating (GVWR) over 6,000 pounds is not subject to the “luxury auto” depreciation limits. For most taxpayers, these vehicles will be considered 5-year “MACRS” property for tax depreciation, and the cost will be deductible according to this schedule: Section 179 expensing on SUVs 5-year property is actually depreciated over 6 years because the IRS only allows partial depreciation in the first year. The above percentages are based on the “half-year” convention. If your fixed asset purchases were heavier in your 4th quarter, the “mid-quarter” convention (and different percentages) might apply. Depreciation is reduced by the percentage of personal use of the vehicle. Commuting is considered personal use. Vehicles used less than 50% for business purposes use different depreciation methods. The Section 179 expense deduction on SUVs is limited to $25,000. For this purpose an SUV is defined as any 4-wheel vehicle that is: Primarily designed to carry passengers over public roads, and Has a gross vehicle weight rating over 6,000 pounds and no more than 14,000 pounds. An SUV does not include any vehicle that: Is designed to have a seating capacity of more than nine persons behind the driver’s seat, or Is equipped with a cargo area of at least six feet in interior length that is not readily accessible from the passenger compartment. The general Section 179 limitations also apply. Section 179 expensing on heavy trucks For vehicles over 6,000 pounds GVWR which do not fall under the definition of SUV above, the full cost of the vehicle can be expensed under Section 179, subject to the general Section 179 limitations. Bonus depreciation 50% bonus depreciation can be taken on SUVs and heavy trucks, subject to the general bonus depreciation rules. Example ABC Company, a calendar-year taxpayer, purchases a new vehicle for $45,000 and places it in service in July, 2013. The vehicle’s GVWR is over 6,000 pounds and it meets the definition of SUV. ABC has taxable income of $50,000 in 2013. The total deduction in 2013 for the vehicle is $37,000: Section 179 expense of $25,000, plus Bonus depreciation of $10,000 ($45,000 - $25,000 Sec. 179 = $20,000 X 50% = $10,000) Regular depreciation $2,000 (($45,000 - $25,000 Sec. 179 - $10,000 bonus = $10,000 X 20% = $2,
Yea, it is fully deductible.
Posted on 2/14/14 at 9:09 pm to highcotton2
quote:
Yea, it is fully deductible.
Did you read what you quoted?
Posted on 2/14/14 at 9:11 pm to highcotton2
quote:
Yea, it is fully deductible.
Did you read what you quoted?
Posted on 2/14/14 at 9:21 pm to McNeeseLSU
quote:
Did you read what you quoted?
quote:
Section 179 expensing on heavy trucks For vehicles over 6,000 pounds GVWR which do not fall under the definition of SUV above, the full cost of the vehicle can be expensed under Section 179,
Yea, I think so.
Posted on 2/14/14 at 9:22 pm to Type A
I'm assuming your client has taxable income.. If they're in a loss, 179 is disallowed.
And if you're coming to the OT for depreciation help, you're in for a long busy season...
And if you're coming to the OT for depreciation help, you're in for a long busy season...
Posted on 2/14/14 at 9:23 pm to highcotton2
Under 179 limited to the 25000 max.
Posted on 2/14/14 at 9:29 pm to McNeeseLSU
quote:
Under 179 limited to the 25000 max.
Uh, no. $500,000.
Posted on 2/14/14 at 9:31 pm to highcotton2
25000 max for the vehicle. This is not equipment.
This post was edited on 2/14/14 at 9:32 pm
Posted on 2/14/14 at 9:38 pm to McNeeseLSU
quote:
25000 max for the vehicle. This is not equipment.
In your example the depreciation was $37000 and that was for an SUV.
Posted on 2/14/14 at 9:39 pm to highcotton2
That was max 179 of $25k plus 50% bonus plus 5 yr macrs.
Posted on 2/14/14 at 9:42 pm to McNeeseLSU
Mcneese there are exceptions to the 25k limit on vehicles. One of them is having a 6 ft plus bed in this case. Are you not reading what has been posted?
Posted on 2/14/14 at 9:47 pm to simonizer
(no message)
This post was edited on 2/14/14 at 9:49 pm
Posted on 2/14/14 at 9:48 pm to Smoke7024
quote:
That was max 179 of $25k plus 50% bonus plus 5 yr macrs.
Yea, because max for SUV is $25000. The truck he is talking about the max is $500000. He said you could only depreciate $25000 for the 3/4 ton Ford. I was pointing out you could depreciate more than $25000 even for a tricked out Denali which does not qualify for the full deduction.
Posted on 2/14/14 at 9:49 pm to McNeeseLSU
And has a 6ft bed.
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