topic Section 179 for a Real Estate Agent? in Investors & landlords

Section 179 for a Real Estate Agent?

MicMic — Thu, 26 Nov 2020 00:05:09 GMT

My wife is a real estate agent and wants to buy a new SUV to use at least 50 percent of the time for this business. What is the best way to do this? Here are a few more details. She didn’t have the best year so the cost of the new SUV (let’s say$65k) will be more than her gross. I am a W2 employee and we file Married - Filling Jointly. With my income we would still be in the green. Is it advisable to use Section 179 or what would be the best way to write the vehicle off? Can any of this help offset my taxable income? Thanks in advance!

Re: Section 179 for a Real Estate Agent?

M-MTax — Thu, 26 Nov 2020 00:16:38 GMT

The Sec 179 offset is for taxable income from an active trade or business.

Re: Section 179 for a Real Estate Agent?

Anonymous — Thu, 26 Nov 2020 09:52:13 GMT

depreciation deduction is limited to the % of the basis (cost) of the vehicle used for business. unless business use the first year is more than 50% you can't take section 179. the 179 deduction is limited to business income before the 179 depreciation deduction. you can take bonus depreciation instead. or opt out of 179 and bonus completely. it's a question of what is better economically. take the maximum depreciation deduction this year or spread the depreciation deduction over a period of years.