Business deduction for a suv over 6000 pounds

Forum|Forum|3 years ago
December 25, 2022
6 replies
59 views

I have a 1099 side gig that makes just over $100, 000 and then my regular job W2 (physician). My travel to my employer work is about 30 miles a day total there and back. My side gig is medical legal expert opinion so I travel a little but not a lot. My 1099 side gig is not LLC nor S corp. Can I write off section 179 a new suv/truck that weights 6500lbs and costs after my trade in about $55,000 on this years (2022) taxes.

TurboTax Business Windows

Bsch4477

Level 15

As an employee you can’t deduct any mileage at all for your job as a physician. We need more information about your travel for consulting to determine how much travel is commuting and how much is business.

mas1998Author

Level 3

HI, I am asking about the initial first year write of for the entire truck $55,000 for section 179 with the above scenario where my side gig is expert legal consultant, etc...

Bsch4477

Level 15

See previous replies. The issue is that you have to understand what, if any , mileage you can deduct. It is not clear that you understand tax law in that regard.

NCperson

Level 15

as noted, commuting mileage is not tax deductible, and that is true whether a W-2 employee or self-employed.

the way that plays out for self-employed, is that the mileage to / from the first / last client of the day is commuting. The travel between clients is tax deductible.

Example: I a) go work my W-2 job in the morning, b) then travel to my side gig after work, c) before returning home.

only b) is tax deductible, a) and c) are commuting miles

another example:

Example: I a) go work my W-2 job in the morning, b) my employer sends me to see a client but doesn't reimburse me for my mileage, and then c) I return home

none of the mileage is tax deductible as a W-2 employee.

Mike9241

Level 15

have some other info. under current tax law. the trade-in value does not reduce the cost of the new vehicle. rather it is treated as sales proceeds of the old vehicle. you have provided no info on it. so whether any of that is taxable depends on what you deducted for tax purposes for depreciation or mileage.

One way to handle trade-in value received when the usage of the vehicle was part personal and part business.

Prorate the original cost based on mileage
Allocate the trade-in value the same way
Compute gain or loss on personal portion. Loss is not deductible. Gain is taxable
Reduce the business portion of the original cost by the depreciation taken or use the depreciation included in the standard mileage rates. Depending on the methods you used each year. For the depreciation included in standard mileage see IRS PUB 463. Do not reduce the business portion below zero
Any loss is deductible. Any gain is taxable as ordinary income not to exceed the depreciation taken. Any excess gain is capital gain. This assumes the vehicle was held for more than 1 year. Otherwise, all gain is ordinary.

Mike9241