what is the rule for purchasing a vehicle over 6000 lbs when using it for self employment? I was told the full amount of the cost for the vehicle could be deducted from income . for ex: if you made 100,000 and the cost of the vehaicle was 35,00 your taxable income would be 65,000. Could you please give me the full details on this subject? thank you
2007-05-22 08:34:50 · 3 answers · asked by Lexie b 1 in Business & Finance ➔ Taxes ➔ United States
If you bought a vehicle weighing over 6000 lbs and it is a sport utility vehicle, truck or van that can be used used for passengers you are limited to section 179 depreciation of up to $25,000 in the year you bought it, if it's not a sport utility vehicle or can't be used for passengers then the sec 179 limit is $108,000 for 2006. I've included a link to this information.
2007-05-22 09:29:19 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Go to the IRS website and look up the depreciation rules for vehicles in the IRS publications. It looks like you've been told the old rules which changed about 18 mo. back. There are limits that restrict your ability to write off a vehicle all in one year (or even over 5yrs), especially if the vehicle does not fit the definition of a "work truck".
2007-05-22 16:07:39 · answer #2 · answered by bbcpa7 2 · 0⤊ 2⤋
You'd have to depreciate it over the life of the vehicle.
2007-05-22 15:40:22 · answer #3 · answered by Judy 7 · 0⤊ 1⤋