topic Re: question in Self employed

question

hurielbeta — Wed, 27 Oct 2021 16:03:40 GMT

Can I write off a new car that I purchase...I paid for the full amount

Re: question

Anonymous_ — Wed, 27 Oct 2021 16:07:59 GMT

You need to provide more details concerning the use of the vehicle.

After the TCJA (tax reform), employee expenses are no longer deductible.

Otherwise, refer to the following links to IRS web sites.

https://www.irs.gov/taxtopics/tc510

https://www.irs.gov/publications/p463#en_US_2020_publink100033926

Re: question

hurielbeta — Wed, 27 Oct 2021 16:09:13 GMT

I am self employer as a real estate broker..and I purchased a car and paid for it in full 70K..Can I write that off?

Re: question

Anonymous_ — Wed, 27 Oct 2021 16:10:43 GMT

Yes, but you have several options which you need to review.

See https://turbotax.intuit.com/tax-tips/small-business-taxes/business-use-of-vehicles/L6hi0zzzh

Re: question

shirleyh88 — Wed, 27 Oct 2021 16:16:30 GMT

Hello hurielbeta!

Thank you for your question. If you are self-employed and use the car for business, you have the option of writing off the entire amount by applying federal Section 179 deduction on your tax return. To qualify for a section 179 deduction for a business vehicle, you must have purchased the car and put it into service during the year in which you apply the section 179 deduction. Section 179 deduction is intended to be used for property such as a vehicle that is for business use only. The property must be used more than 50% of the time for business purposes. This deduction is limited to the amount of use and cannot be taken on personal use of the property.

Please refer to the below article on section 179 deduction for reference:

https://www.thebalancesmb.com/section-179-deduction-business-suv-397885

Please let me know if this answers your question, or if I can be of further assistance.

Thank you!

Shirleyh88

Re: question

Anonymous_ — Wed, 27 Oct 2021 16:19:10 GMT

@hurielbeta

In addition to Section 179, as outlined by @shirleyh88, you may want to investigate bonus depreciation.

See https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act