How do I write off the loss of buying a bad vehicle?

I bought a used van for my business, but it broke down on the first trip. The cost to fix it was worth more than the van. Can I write off the cost of the van?

posted

Yes, if the van is completely unusable, has been junked and/or was not traded for a new vehicle. Each business vehicle that is traded for another relates to the cost basis of the replacement vehicle.

If there was no trade, then you can deduct this cost of this vehicle under expenses on your business. If you received any money for the van, such as from a junk yard, then that is included in the business income.