Vehicle Tax Write Off/Deductions Options?

[brunner]

Those of you who are business for yourself and buy a new vehicle annually or every couples years, how do you deduct it?

Actual Expense?

Standard Mileage?

My wife is a real estate agent and a GC/design consultant. We have always done standard mileage. She keeps track of business miles through an app.

We will be ready for a newer vehicle later this year. Should be buy now and write the entire amount off year one?

How do we get the most out of this deduction?

What are your methods? Why or why not?


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[Johnny Dangerr]

You can only write off so much a year and eat the rest. I have done milage knowing there is a ceiling. You eat the rest.
With that said I found a new one. If the vehicle is over 6000 pounds it's insane how much you can write off on the first 3 years. Basically free for however much you can pay on the vehicle.
The new Genesis G90 with all the bells and whistles weighs 6050. Most 2500 series trucks are over 6K.

https://www.genesis.com/us/en/genesis-configurator.html/F21NA3VH00#powertrain

[brunner]

You can only write off so much a year and eat the rest. I have done milage knowing there is a ceiling. You eat the rest.
With that said I found a new one. If the vehicle is over 6000 pounds it's insane how much you can write off on the first 3 years. Basically free for however much you can pay on the vehicle.
The new Genesis G90 with all the bells and whistles weighs 6050. Most 2500 series trucks are over 6K.

https://www.genesis.com/us/en/genesi...H00#powertrain

Yep this is my struggle - I’m considering this option. My wife will most likely pull a trailer more but I don’t want to get her in a diesel.

I prefer gas for what her main usage is.


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[BertramBass]

Talk to your CPA. They are worth their weight in gold on things like this. I buy a new 3/4 ton diesel every 3 or 4 years with company $$$. I expense everything for it yearly. I believe my CPA puts it into service for X number of years and possibly depreciates it. (???) My tax return is around 100 pages and it is usually buried in there somewhere. I think the year you sell it or trade it in is when you have to pony up $$$. Possibly called "depreciation recapture". Seams like everything gets more and more complicated and confusing every year... LOL

[GA Bowhunter]

We have always depreciated the truck 100% the first year and deducted 100% of actual expenses each year.

[brunner]

We have always depreciated the truck 100% the first year and deducted 100% of actual expenses each year.

How often are you being a new/newer one?


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[HOOKNBULLET2]

Look up Bonus Depreciation. The rules are changing this year I believe. Buying the last week of December can be very advantageous.

Hire a CPA and not just any CPA, but one that will provide you an education about what deductions are available.

[Atfulldraw]

We buy big heavy vehicles and 179 them.

5 of them last year, two yukons, three trucks.

none of them last long anyway - might as well keep them under warranty.

[Atfulldraw]

Look up Bonus Depreciation. The rules are changing this year I believe. Buying the last week of December can be very advantageous.

Hire a CPA and not just any CPA, but one that will provide you an education about what deductions are available.

Yes.

Starting to ramp down in the following years.

Guess I have to buy that dozer this year!