New business auto purchase

Oct 19, 2009 0 Replies

Someone with a business (Schedule C) has asked about the 50% bonus depreciation set to expire at the end of this year.



He is thinking of buying a new car (RX 350 Lexus crossover) later next year or early 2011 that will be used in his business. He historically has used his car 90% for business use and wants to know if it is worth his while to buy this year rather than later because of the 50% bonus depreciation.



My reading is that this auto falls under the "luxury definition" so he cannot use the 50% bonus, but I am not sure. Dollar wise it will be more than the $15,000 (sticker price around $42,000), but it is not built on a truck chassis.



Can anyone clear this up?



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