Section 179 Deduction Business Auto

[angiewakefield]

In 2017, we purchased an SUV over 6,000 pounds that is used 91% of the time for business. We file Schedule C.  What is the limitation on the Section 179 deduction?  I have read that there is a $25K section 179 deduction limit, but I have also read 91% of the purchase price can be deducted as a section 179 expense in 2017. Which is correct?

[PaulaM]

$25k is the limit. See link below for reference.

Section 179 overview

[angiewakefield]

Yes, I have read about the $25K, but I have also read that bonus depreciation as well as the normal allowable depreciation can be part of the Section 179 deduction.  All of the information I have found is very confusing regarding this situation.  I am just trying to make the best decision before I opt out of doing the standard mileage deduction.

Thanks for your help!

[PaulaM]

The bonus depreciation that is 100% of your business use (91% in your case) is for property acquired after 9/27/17. The actual expense method is going to provide a greater deduction to you most likely. Figure it both ways in the section to see and make your decision from there.

[angiewakefield]

We drove almost 33,500 miles for business in 2017, so the standard mileage deduction is actually quite large.  Combined with the fact that we would give the ability up to do the standard mileage deduction for remaining life of the car, I am not sure that actual expense are the way to go. 

I appreciate your help, as i stated before, i was having a hard time finding an clear cut answer.  I also think turbo tax has made it harder to figure things both ways by taking the ability to fill in actual forms away (in this case the 4562). Sometimes it's nice to be able to go straight to the forms.

[PaulaM]

Forms view is available on the desktop versions. For online versions, you can toggle between the standard and actual expense methods to see which will provide the greater deduction. You can see the forms under the Print Center (after you pay for the service) to see how the calculations are made.