100% first-year bonus depreciation for SUV above 6,000 pounds to be purchased in late November. Still aplicable for the tax year?

[vicente]

The lease for the current vehicle that I use mostly for business is up in late November, and I am exploring purchasing a used SUV over 6,000lbs to take advantage of the new 100% first year bonus depreciation. Would the deduction still be applicable even when the vehicle will only get a month of use before the end of the tax year? Would the usage be based just on the month of December in case it is not 100% business?

[Critter]

You are confused ... the 100% use means "since you bought the vehicle" it was used 100% for business ... this has nothing to do with how many months you owned the asset in the year.

[vicente]

So what you mean is that it would be the time between purchasing the vehicle and filing the return, beyond the fiscal year. Correct?

[Critter]

On a 2018 return...100% use from time it was placed in service until 12/31/18.  What happens in 2019 is 2019's problem.

[vicente]

Sorry to keep bugging, but I feel that there is a piece I must be missing. Let’s say the vehicle is purchased at the end of November, and before the end of the year it is only driven 100 miles, all for business. That is the only point of reference to claim the 100% first-year bonus depreaciation when filing the return? Meaning, 100% of the purchase price of the vehicle, deducted all at once based on just 100 miles of use? This scenario is not far fetched, given that December is a rather slow month because of the holidays.

[Critter]

As far fetched as it may seem that is exactly right ... now if you were going to depreciate the vehicle using the regular MACRS  then the 4th quarter convention would come into play but not for the bonus depreciation.

[JosephTawil]

Truck purchased in 2018 amount 82,301  special bonus depreciation is giving me 61,000  is that correct