what type of vehicle? what is it use for? is it an electric vehicle? what percent if any is personal use?
all these items factor into the maximum depreciation you can take for a vehicle place in service in 2019
the categories for type are:
auto under 6,000 lbs
light truck, van suv under 6,000 lbs
truck or van over 6.000 lbs
heavy suv over 6,000 lbs
heavy truck over 13,000 lbs
truck tractor for over the road
the max is the same whether you take 179 or bonus.
with 179 there's some tax consequences if you dispose of it before the year following the end of its macrs life or business use drops below 50%
If you stopped using the asset in your business before the end of its useful lifespan (macrs lifespan ) for whatever reason (such as it was sold, destroyed, or stolen) or the business use of the asset dropped below 50%, the Section 179 conditions are no longer being met and the IRS will instead apply regular MACRS depreciation to that asset.
The difference between the Section 179 deduction and the "used up" portion of MACRS depreciation is called a Section 179 recapture and must be reported as income.
the following is an example in year 1 you buy a vehicle with a 5 years macrs life and take the maximum depreciation of $18,000 as a 179 deduction when regular macrs depreciation would be $6,000. you use it 100% for business in that year. your business fails and the following year business use drops to 0%. you would have to pick up as income $12,000.
now lets say you take bonus depreciation the first year of $18.000. same facts for years 1 and 2. there is no depreciation recapture in year 2.
