I am a complete novice when it comes to tax filings. I am also new to Turbotax. I hope somebody can help me. I am sole proprietor with two LLCs and filing jointly with my wife. On December 31, 2019, I took possession of a new heavy SUV (>6000lbs GVWR) in Nevada (my residence) intended 100% for business. My first day of business use was December 31, 2019.
Here is what I have read. Based on the Tax Cuts and Jobs Act of 2017, heavy SUVs over 6000lbs are treated for tax purposes as transportation equipment and therefore qualify for 100% first-year bonus depreciation and Sec. 179 expensing (whatever that means!) if used over 50% for business. The example provided on the website was as follows: To illustrate the potential savings from these first-year tax breaks, suppose you buy a new $75,000 heavy SUV and use it 100% in your business in 2019. You can deduct the entire $75,000 in 2019 thanks to the 100% first-year bonus depreciation privilege.
Is this information correct? I have also read that there are different ways to get the most out of choice of deduction(s) but don’t understand it. How would I apply for the deduction? Many thanks!
