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How much of a car can be written off if you purchase it for your business? can that be done every year (buy a new car and trade it in for a new one)?

What are the benefits of buying it outright, a downpayment with monthly car payments/loan, and leasing?

592

Expert Alumni

Nov 16, 2022 6:35:42 PM

Hi Ztshapiro,

This article explains the limits Business Use of Vehicles

Yes, you can do that every year however, when you sell or trade in the car, the depreciation deduction is recaptured (taken back) in the calculation of the gain / loss on that business asset.

Here's an article that explains in further detail: Don’t Let Section 179 Recapture Hurt You

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