the 179 deduction is limited to net business income before the deduction. however, a greater problem is the lack of profit motive. you need a profit 3 out of 5 years to avoid this being classified as a hobby - if not the IRS could change your returns to reflect just the income earned) With no income you could take the 179 deduction on the vehicle, however, none would be allowed because of the lack of profit. It would be a carryforward from year-to-year,
whoever told you what you posted doesn't know the tax laws or your situation. tax savings from an expense never offsets 100% of the expense. say the van was $10K. if you were in the top tax bracket you might reduce your taxes $4K leaving you out of pocket $6K. if you are paying no taxes, then you're out of pocket $10K.
