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I purchased a work vehicle for my business in 2019. I did not take the 179 credit. It was paid off in 2020. How can I take a tax credit on it?

I made payments thru 2019 and and paid it off in 2020. I used it for work in 2019 and took the mileage, but didn't write off the purchase, (I don't think) where would I look in my 2019 tax return to be sure?
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ToddL99
Expert Alumni

I purchased a work vehicle for my business in 2019. I did not take the 179 credit. It was paid off in 2020. How can I take a tax credit on it?

You do not get a tax credit (or deduction) for paying off a vehicle loan; if you are still using the vehicle in your business, you can continue claiming the depreciation expense.

 

Form 4562 Depreciation and Amortization will show if you elected to expense any part of the purchase under Sec 179 (see Part 1 of Form 4562). Part 5 of Form 4562 will show any regular depreciation expense you claimed.

 

 

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