Here's a vehicle topic that may intrigue you.
The IRS examined DJ's 2018 tax return, which is now in appeals.
The vehicle in question is an SUV that weighs 5,700 pounds curb weight and 6,100 pounds gross vehicle weight.
Because his SUV is based on a car chassis, the IRS lawyer processing his appeal tells DJ that he must utilize curb weight.
DJ is entitled to the $55,000 deduction. However, because the law permits it, the IRS lawyers are mistaken.
The SUV must avoid the luxury vehicle depreciation limits on deductions (or Section 179 expensing) to qualify for bonus depreciation. It does so by the following facts:
An SUV, regardless of chassis, can qualify as a truck under DOT guidelines.
For more information or questions regarding bonus depreciation or Section 179, Please don't hesitate to contact me.
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.