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Buying pre-owned SUV (i.e. 6000 + lb) and Section 179 tax code?

Hello there,

Correct me if I'm wrong, but my understanding about Section 179 tax code is that we need to buy brand new SUV (6000 plus lb) to qualify for the $25K dedication plus the 20 % depreciation deductions for the first year

We are planning on buying pre-owned SUV (6000 plus lb) i.e. between

2005 - 2007 year model and will be using primarily for business purpose. Will we be able to depreciate 100% of the value of the pre- owned SUV i.e. in 3 to 5 yrs? Ad whether it will also qualify for the $25K dedication

Thanks

-Charles

Reply to
ccolaso
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You are confusing Section 179 with bonus depreciation. Bonus depreciation is only applicable for new assets. I haven't read the new stimulus package in detail so I don't know if the same restrictions apply for the new bonus depreciation but I imagine it will.

Assuming used assets will not qualify for the bonus deduction, you will be able to write off up to $25K.

Reply to
Mike20878

thanks Mike for the details

Reply to
Charlie

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