I am a W2 employee for a company & bought a lrg SUV this yr & as I was going thru TurboTax it prompted me for 179 deduction to be used. Not self employed can I use this?

[lindasherman34]

I thought section 179 was only for the self employed?  I do use the truck 100% for work and they allowed me to take up to $25,000 this year as a deduction.  Does this sound right?

[IsabellaG · Accepted solution]

Yes, you can use the Section 179 deduction for your vehicle if you are using the actual expense method for your vehicle expense. You don't have to be self-employed to take it. Employees are "in the business" of being employees. Depending on the weight and type of vehicle, you could be able to expense up to $25,000 this year.

I would only caution about claiming that you use your vehicle 100% for business, because driving back and forth to your job would be considered commuting expense, which is personal, and there would likely be at least some personal use of your vehicle. Just make sure that you keep records to establish business use. 

https://ttlc.intuit.com/replies/5387864

[lindasherman34]

This is great thank you!  I think I did 90% business use since we have another vehicle for personal  use and work out of our home but drive to my accounts.  Thank you

[IsabellaG]

You're welcome!

[Sharon F]

I appreciate the feedback & agree 100% BUP isn't likely and we certainly do have a mileage log.

How does the employee reflect this 179 deduction on the tax return.  As a W-2 Employee then we likely wouldn't have a Schedule C ... or do we do form 4562 with a schedule C and then that rolls into the 1040 Employee wages?

[xmasbaby0]

@Sharon F The other posts in this thread might be more than a few years old, so you cannot rely on the information here  now if you are trying to deduct car expenses.  When the old user forum changed from Answer Xchange to Real Money Talk in 2019 a lot of old threads migrated over with 2019 dates----this thread may be a lot older.   W-2 employees cannot deduct job-related expenses on a federal tax return per the tax laws that changed for 2018 and beyond.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...