Can I take more than standard or actual mileage deduction on a car I bought for $32000? It's used to pick up supplies and go to meetings in a construction business.

[ckhathawaymt]

I bought a Subaru Outback ($32000, considered a luxury vehicle) that I use for both work and personal. I expected to be able to take a partial deduction under Section 179 but was not given the option. Can I take anything more than the standard (or actual) mileage deduction on that vehicle?

[KrisD]

The section 179 deduction and bonus depreciation are offered if you elect to take actual expenses, and if the vehicle is eligible. A vehicle must be used for more than 50% business to be eligible. 

According to the IRS:

"The new law changed depreciation limits for passenger vehicles placed in service after Dec. 31, 2017. If the taxpayer doesn’t claim bonus depreciation, the greatest allowable depreciation deduction is:

• $10,000 for the first year,
• $16,000 for the second year,
• $9,600 for the third year, and
• $5,760 for each later taxable year in the recovery period.

If a taxpayer claims 100 percent bonus depreciation, the greatest allowable depreciation deduction is:

• $18,000 for the first year,
• $16,000 for the second year,
• $9,600 for the third year, and
• $5,760 for each later taxable year in the recovery period."

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