Greetings,
My Subchapter S Corp purchased a used under 6,000 GVWR vehicle in July 2023. We traded a leased vehicle that was also leased under our S Corp for this newly purchased used vehicle. We did NOT take any 179 depreciation on the “new” used purchased vehicle on our 2023 1120S return. We do NOT use the standard milage deduction and use gas and repair expenses. My question is:
May we take 179 depreciation on our 2024 1120S return for this vehicle that was placed into service in July 2023??
We always took 90% of our lease payments as a legitimate business expense in the past, however I read where a Sub S Corp may NOT deduct the monthly vehicle payment amounts as a business expense on a purchase. Any help would be greatly appreciated!
