- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
No, you can't buy a car and write it off on your taxes as a one time write off. When you purchase a vehicle, you can depreciate it on your tax return. Depending on the type, percent business use and cost, how you depreciate it will vary. When you do this, you have to claim actual expenses and keep track of all related things for your deductions.
If you are using the standard mileage deduction, there is no separate write off for the car. This method is recommended if you plan to keep the car a long time.
In Topic no. 510, Business use of car states:
Depreciation
Generally, the Modified Accelerated Cost Recovery System (MACRS) is the only depreciation method that can be used by car owners to depreciate any car placed in service after 1986. However, if you used the standard mileage rate in the year you place the car in service and change to the actual expense method in a later year and before your car is fully depreciated, you must use straight-line depreciation over the estimated remaining useful life of the car. There are limits on how much depreciation you can deduct. For additional information on the depreciation limits, please refer to Topic no. 704. Publication 463 explains the depreciation limits and discusses special rules applicable to leased cars.
Please see page 34 of Publication 463 regarding business use to start your journey. Then you can look at price factors and the rest. Luxury automobiles are limited on the bonus depreciation that can be claimed.
**Mark the post that answers your question by clicking on "Mark as Best Answer"