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Level 1
posted Apr 24, 2024 11:22:52 AM

Car purchase deduction

If I purchase a car specifically for work purposes, can I deduct and depreciate all of it on my taxes in one year instead of taking the mileage method?

 

Also, if I can do this method, can I claim car registration, insurance, maintenance, etc, as well?

0 1 10054
1 Replies
Employee Tax Expert
Apr 24, 2024 11:54:54 AM

Possibly.  It depends on the size, type and price. 

 

What is a Section 179 deduction?

 

Sport Utility and Certain Other Vehicles
You cannot elect to expense more than $28,900 of the cost of any heavy sport utility vehicle (SUV) and certain other vehicles placed in service in tax years beginning in 2023. This rule applies to any 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight. However, the $28,900 limit does not apply to any vehicle:

  • Designed to seat more than nine passengers behind the driver's seat;
  • Equipped with a cargo area (either open or enclosed by a cap) of at least 6 feet in interior length that is not readily accessible from the passenger compartment; or
  • That has an integral enclosure fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.