I'm purchasing a van as my business vehicle and will expense under section 179 and bonus depreciation.
I'm also planning to convert the van to a mobile office. (this may have modifications for sleeping option similar to camper van) either for hybrid work which are short term and have more than an hour of commute or rent it out on outdoorsy etc . For the conversion can I just take MACRS depreciation ?.
IRS and tax courts don't seem to generally agree on motor home's (although the above vehicle may not have all features a motor home has) whether it's a transportation equipment or short term lodging for section 179 expensing. Hence a MACRS depreciation was suggested more appropriate for motor home (by other online forums). Assuming it's 100% used for business purposes, will this be compliant.
vehicle itself will be a assets with 0% value on books due to (section 179 + bonus dep) and modifications will be an asset ?