New vehicle, want deduction, not depreciation..
I bought a new 9600 GVW utlity body truck for my sole proprietor plumbing business in Dec 2007. Instead of taking depreciation, I want to take the $32,000 off my bottom line as a deduction on this years taxes. I paid for the vehicle in full. I own it. I am using Turbo tax home and business and onlty see in the ASSET area where I might be able to do this. Can I do this and list it as "other" in the asset area?
Thanks
"steve" wrote
Don't have a clue why you think the vehicle isn't an asset. That is where it should be listed, and that is where you'll take Section 179 - which is nothing more than accelerated depreciation - to expense the vehicle.
FWIW: Section 179 is limited to profits in the business.
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That would be a Section 179 election. You need to follow instructions for and file a Form 4562
The economic stimulus plan contains some enhancements to section 179 for writing off more depreciation. Not sure of the details though.
wrote
Even so. Section 179 applies to ~assets~.
One thing you don't want to do is try to expense out an asset purchase in some other manner than regular depreciation or through Sect 179.
The IRS has reclassified asset purchases that were buried in repairs, office supplies, etc, and by the time that gets done, it's too late to claim Sect
179, and you're stuck with regular depreciation.So record the purchase as an asset (as it should be) and if possible, take Section 179 or whatever other depreciation incentives are allowed.
Sure it does, but that applies to tax year 2008.
ChEAr$, Harlan Lunsford, EA n LA
Or even Salary on a W-2.
Starting Jan 1 2008, Annual S 179 limit raised to $250,000 vs a ceiling of $800,000.
And all the recent work to get automatic inflation ajustments in Sec 179 amounts has been dropped :-(
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