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Level 2
posted May 5, 2021 8:18:34 PM

Would this qualify for Section 179 Deduction?

 

I am starting an LLC this month and I plan to purchase an SUV (6000+lbs) in December. 

  • Do I need to be in business the entire year to qualify for the entire Section 179 with bonus depreciation deduction? Or would it be prorated since I started in May?
  • If the SUV is purchased in December, and it's used 80% for business, can I still deduct 80% of the value even though it was only in service for a month (December) and I haven't been in business the full year? How does that work?

 

0 1 292
1 Replies
Expert Alumni
May 6, 2021 2:30:20 PM

1. No  2. Yes  3. No  4. See Publication 946, How to Depreciate Property. Your SUV is less than 14.000 pounds and is listed property which means special rules.

  • See page 53 for listed property.
  • See chapter 2 for sec 179.
  • See page 60 for the maximum deduction allowed.
  • Page 62 has a worksheet for you to determine your allowed deduction.