For 2018, is the purchase of a business vehicle (cargo van) section 179 or bonus depreciation deduction limited to $25,000 or can the whole cost ($33,000) be deducted?

[Anonymous · Accepted solution]

take bonus not section 179.  

You may have to recapture the section 179 deduction if, in

any year during the property's recovery period, the percentage of business use drops to 50% or less. In the year

the business use drops to 50% or less, you include the recapture amount as ordinary income in Part IV of Form

4797. You also increase the basis of the property by the

recapture amount.

there is no such rule for bonus. 

[TaxGuyBill]

BUT ... most States don't accept Bonus, but most do accept 179.  So it may depend on what you want for State.

[TaxGuyBill]

A cargo van should qualify for the full amount, for either the Bonus Depreciation or Section 179.

[Critter]

What is the gross weight of the can? Less than 6000lbs or more?

[TaxGuyBill]

If it is actually a "cargo" van (no rear seating, etc.), the weight should not matter.

[Critter]

Ahh true.

[jimjossart]

The van is less than 6,000 lbs

[Critter]

Is it a true cargo van with no rear seating?  If so the weight doesn't matter.  If not then there are limitations on the deduction... the program will walk you thru the screens in that section.