Tax Gurus! late help here - Section 179 Porsche deduction

Sonic dB · Sonic dB's Garage

Since I use my car primarily as a daily driver for work.... according to the tax software that I have, I can deduct the full amount of depreciation in its first year, under Section 179 deduction.

Since I paid $17K for the car last year, taking factors into account...the Tax Cut is allowing me to take a huge $15200 deduction for the Porsche. This results in me going from paying a tax, to getting a significant tax refund.

Ive used this section 179 deduction before.... my question is that if it all appears to line up OK>.. .should I just go ahead and do this and take the refund?

Sounds too good to be true, but it all appears to be legal.

fintstone · fintstone's Garage

How do you use it for work? Sales, delivery?

Sonic dB · Sonic dB's Garage

Sales....Im driving every day for sales and just tool around town in it on the weekends.

I just did some web research and appears that this 179 deduction is perfectly applicable to my situation. Woo hoo.

cegerer · cegerer's Garage

Don't think so ..... pretty sure it has to be a "truck/SUV" and have a gross vehicle weight of 6000 pounds ......

http://www.rchcpa.com/newsandevents/press_suv.htm

Sonic dB · Sonic dB's Garage

cegerer... actually it does apply... the truck thing at 6000 lbs just gets you a bigger exemption. Its all written into Tax Cut and is checking out perrrfectly.

Go Porsche!

qikcpa · qikcpa's Garage

sorry, luxury car limitation comes into play... i know $17k isnt luxury but in the irs mind over 13k needs to be limited. off the top of my head the most you can do is like 3600 or 4200. cant recall the exact figure, software knows. but in any event no way on the 17k....ran it through the software...$3060 max on passenger car. ps commuting is never deductible. file an extension. get your ducks in a row.

Sonic dB · Sonic dB's Garage

oops...yeah you are partially correct. The limit is just over $10K if the car was purchased after May, and over $7K if purchased before last May.

its all good though... moneys coming back. ducks are still quackin

qikcpa · qikcpa's Garage

yep, bonus depreciation kicks in in the first year. Need a job?