I purchased a van for my company [C-corp, 100% business use, California] in Aug/2025 for $80,000. I am estimating my corporate profits to be about $25K for 2025 BUT next year [2026] it will be closer to 100K and again in 100K in 2027 and 2028.
I was trying to understand if I messed up by buying it now or I should have waiting until Jan 1, 2026 to really take advantage of section 179.
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Don't worry about it. It should be fine. And you can't change the past now.
The rules for vehicle are complex, and how much you can deduct using Section 179 or using Bonus Depreciation depend on several things, including the GVWR of the vehicle and the details of the vehicle itself (such as if it is a cargo van with a barrier between the driver and the rear, or if it is some other type of van).
Because of those complexities and I don't know why kind of van you have, I can't give super-specific advice. However, it probably isn't a big deal for several reasons. There are several options involved, and which one is best depends on your very specific circumstance. Working with a good tax professional is best because they can guide you through which are the best options for your circumstances.
Thank you for the reply. It's just a simple van without seats. It weighs 7000 lbs. It is mostly used just for carrying equipment around, no barrier in between. Not sure if that helps give more clarity.
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