Light and Heavy SUV's and Section 179

[ISIPVPROJECTS]

My small Business is ready for a vehicle.  The limit for lighter trucks and SUV's under 6000lb GVWR is much less than Heavy SUV's that have GVWR between 6,000 lbs and 14,000 lbs.  It seems more beneficial to purchase a heavy SUV or truck for the higher deduction?

[Cindy4]

Great observation that the first-year deduction may be higher for a vehicle purchase in 2024!  Some of that depends on the cost of the vehicle.  Even with the possibility of the higher deduction whether it's more beneficial to purchase a heavy SUV or truck also depends partly on your financial position.  Higher deduction usually means higher cost.  Cash flow can sometimes be a constraint to harvesting tax deductions.   The other thing to consider is mileage.  If your business is filing on a schedule C on your 1040 as a sole proprietor, you have an option to use mileage, but you can't take both mileage expense and actual expenses

For new and pre-owned vehicles put into use in 2024 (assuming the vehicle was used 100% for business...

• The maximum first-year depreciation write-off is $12,400, plus up to an additional $8,000 in bonus d...
• For SUVs with loaded vehicle weights over 6,000 pounds, but no more than 14,000 pounds, 60% of the c...

Hope this helps!

Cindy