If I purchase a car for my business, how much of a tax credit can I get for that?

Question

I live in California and I need an SUV or big truck for work, can I claim this as a tax deduction?

Answer 1

There's no credit for buying a vehicle in general, though certain hybrids may qualify for one.

If you are self-employed you can either claim a Section 179 deduction for the vehicle though there are some restrictions on certain SUVs. You can always depreciate it, regardless of the vehicle type.

If you are not self-employed you may be able to take a miscellaneous itemized deduction on Schedule A, through Form 2106 for unreimbursed business expenses. You can either take a standard mileage rate for the business use or actual costs, apportioned for the business use of the vehicle. If you take actual costs you can take a depreciation deduction as part of the costs.