The linked article by SJ is a good summary. Things to keep in mind:
- Since the vehicle is not original use, it does not qualify for bonus depreciation.
- The vehicle does qualify for the maximum Section 179 for heavy vehicles of $25,000. So this means you could expense the entire amount in the initial year.
- While the vehicle does qualify for the $25,000 Section 179, note the discussion in the article on taxable income limitation. If you do not have sufficient taxable income from your trade or business, any Section 179 not allowed is carried over
- The state may limit your Section 179 further
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
