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Business & farm
No. Except for unusual circumstances, "Salvage Value" has not been used for federal income tax purposes since 1986.
If the truck is under 6000 GVW and you DON'T elect OUT of Bonus depreciation, the depreciation Recovery Period will end up being 7 or more years. If you don't want that, you would want to elect OUT of Bonus depreciation.
Keep in mind that if the business percentage drops to 50% or less in the next five years and before you sell the vehicle , you will need to "recapture" some Section 179 and/or accelerated deprecation.
‎February 14, 2025
12:34 PM