bonus depreciation or 179

[parsonent_46]

Hi,

Can you use the bonus depreciation or 179 on semi tractor truck purchased used?

[Mike9241]

Yes, used property can qualify for the Section 179 deduction if it’s purchased or financed, put into service in the tax year of the claim, used over 50% for business, and is “new to you”, meaning it’s new to your business regardless of whether it is brand new. Section 179 applies to property that is “new to you”, meaning it can be brand new or used, but it must be a new acquisition to your business and put into service in the tax year you’re claiming the deduction. 

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Yes, under the Tax Cuts and Jobs Act of 2017 (TCJA), you can take bonus depreciation on used property. The property must meet certain conditions, including not being used by the taxpayer or a predecessor before the acquisition, not being acquired from a related party, and the taxpayer’s basis in the property must not be determined by the seller’s or transferor’s adjusted basis