Taking Repair deductions on a car after a 179 deduction

[picard276]

If i have a passenger car that i have purchased this year (it is a used car but it is new to me) in this calendar year. I want to write of the 179 deduction on the amount i paid for the car (~8000). I then had to put $2000 in labor repairs into the car to get it running. The car is used 90% for my work only for independent contracting (larger car for storage.. but does not meet the 6000 gross weight minimum). I was wondering if the gas and repairs are items i can still deduct on the car even though i have a 179 deduction on it this year. 

[Critter]

You will need to decide ( and the program will help you ) between using the standard mileage rate  OR  the actual expenses + depreciation on any new vehicle placed in service.  If you choose actual expenses in the first year of use you must use the actual expenses method going forward.  And you cannot use a 179 deduction on a vehicle but you can take the bonus depreciation as allowed.  Let the program walk you thru your options and make the best choice for you.

https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Business-Use-of-Vehicles/INF1207...

[picard276]

So i see that the amount is $3160 + 8000 in bonus depr. which is $11,160 towards the price of the vehicle. I understand i can choose certain expense types (standard mileage or actual expenses) but the part i am unclear on is the $3160 + 8000. The purchase price of the vehicle was ~8000. This car is an older car but is  new to me, purchased this calendar year, and was put into service this year. The total price of the Car with taxes was ~$8800. Do i get to write off $8800 *(% of car for business) OR only $3160*(% of car for business). (or $8000 * % of car for business)

Thanks.

[TaxGuyBill]

You CAN use Section 179 for the entire $8000.  However, that means you will ALWAYS need to use the Actual Expense Method for that vehicle, and can NOT use the Standard Mileage Rate in future years.  Also, be aware that if the business usage ever drops to 50% or less (including converting it to personal use or selling it) over the next 5 years, there will be tax ramifications because you used Section 179.

Yes, if you are using the Actual Expense Method, you can also enter all of your other expenses, including gasoline, repairs, maintenance, and insurance.  If you use Section 179 on the entire amount this year, there will be no further depreciation to claim in future years.

[Critter]

<a rel="nofollow" target="_blank" href="http://www.section179.org/section_179_vehicle_deductions.html">http://www.section179.org/section_179...>

[normandeaus8]

Thank you for answering my question that you can take both 179 deduction and actual vehicle expenses.

[joshh0]

Returning to this thread for more clarification-

You write: 

"Yes, if you are using the Actual Expense Method, you can also enter all of your other expenses, including gasoline, repairs, maintenance, and insurance.  If you use Section 179 on the entire amount this year, there will be no further depreciation to claim in future years."

My question is: Repairs, maintenance, mileage, and gas costs are still allowable deductions even after I have taken the Section 179 deduction for the full purchase price of the vehicle in a prior year?  In other words, these are not considered "depreciation", and so are still allowable deductions going forward?

Thanks

[KrisD15]

Yes, only the value of the vehicle has been depleted. The cost to run the vehicle can be taken year after year.