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Deducting vehicle purchace

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  • #16
    Yeah there's a lot of rules/potential loopholes regarding this and needs someone that's familiar with the process. According to this, if OP gets a truck with a 6 foot bed to 'carry around equipment needed for their nursing home and hospice work' then they can get the full deduction because then it would be exempt?
    What are the limits on Typical Passenger Vehicles used for Business?

    For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction including both the Section 179 expense deduction as well as Bonus Depreciation is limited to $11,160 for cars and $11,560 for trucks and vans.

    Exceptions include the following vehicles:

    • Ambulance or hearses used specifically in your business

    • Taxis, transport vans, and other vehicles used to specifically transport people or property for hire.

    • Qualified non-personal use vehicles specifically modified for business (e.g. work van without seating behind driver, permanent shelving installed, and exterior painted with company’s name)

    • Other heavy “non-SUV” vehicles and trucks with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify for a full deduction (although some “extended cab” pickups may have beds that are too small to qualify).

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    • #17
      Originally posted by Nysoz View Post

      yeah I think people are confusing deducting mileage and section 179 previously known as the Hummer loophole.

      https://www.section179.org/section_1...le_deductions/
      yes and no. yes, OP wants to deduct the vehicle and use questionable mileage calculations to justify proportion of business use. no, the better plan would be to deduct legitimate mileage.

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      • #18
        I read that exemption as exempt from the $11,160 maximum not exempt from it needing to be used for business. From the same site: The vehicle must also be used for business at least 50% of the time – and these depreciation limits are reduced by the corresponding % of personal use if the vehicle is used for business less than 100% of the time.

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        • #19
          If I do 1099 work at home each AM in my home office, then travel to hospital from that home office for regular partnership job... does that travel count? And what about the return to that home office where i do 1099 work again immediately in the evening?

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          • #20
            Originally posted by IRdoc View Post
            If I do 1099 work at home each AM in my home office, then travel to hospital from that home office for regular partnership job... does that travel count? And what about the return to that home office where i do 1099 work again immediately in the evening?
            Returning to this thread for the 1st time since my original comment...too many issues to cover here, maybe a subject for a future post​.

            However, let’s dive in toIRdoc’s question...the issue comes down to a matter of the primary place of work (which I define by income). I don’t think it’s very complicated.

            IfIRdoc’s primary source of income is the 1099 work @ home office each morning and evening and the partnership job is a side hustle (think about this before drawing a conclusion), then I would be inclined to deduct all travel from the “home office”.

            Otoh, if it is the obverse, then I would be uncomfortable signing my name to a return reporting otherwise.

            This is not to say I have the correct opinion. After all, it is my personal opinion. But it is how I would approach the fact pattern.

            The posters here, for the most part and impo, should have/consider a relationship with trusted CPAs who are experienced in their overall needs and who can, therefor, provide appropriate, implementable advice concerning to their specific situation. A CPA (firm) who fits this criteria should not have to research q’s re: backdoor Roths, solo-k’s, the differences/benefits of various retirement plans that doctors are typically offered, particulars of contracts, etc. etc etc. My comments are simply from a general POV and s/n/b taken as specific to your personal situation.

            Good luck!
            Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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