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Old 02-19-2013, 02:52 PM
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frugalmama4 frugalmama4 is offline
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Default Vehicle Expense/Depreciation Question for Tom Copeland

Hi Tom, follow up question form my previous question.


I'm claiming the actual expense method for a 100% business use vehicle...so would all expenses for this vehicle be deducted at a 100% (gas, insurance, repairs etc.) this is a new auto purchase in 2012.

Deprecation-since the auto is used a 100% for business would I be entitled to deducted the entire purchase price ($30,000) or will it still be limited to the limitation amount ($11,160)?

I'm trying to see over all for my "business and family" if its worth having a second auto with a monthly note.

Thanks!
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Old 02-19-2013, 06:47 PM
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Old 02-20-2013, 12:25 PM
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TomCopeland TomCopeland is offline
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Default Vehicle

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Originally Posted by frugalmama4 View Post
Hi Tom, follow up question form my previous question.


I'm claiming the actual expense method for a 100% business use vehicle...so would all expenses for this vehicle be deducted at a 100% (gas, insurance, repairs etc.) this is a new auto purchase in 2012.

Deprecation-since the auto is used a 100% for business would I be entitled to deducted the entire purchase price ($30,000) or will it still be limited to the limitation amount ($11,160)?

I'm trying to see over all for my "business and family" if its worth having a second auto with a monthly note.

Thanks!
If you have the records to show that you use the vehicle 100% for your business, then you can deduct 100% of insurance, repairs, gas, etc. Car depreciation is tricky. Since the car is being used more than 50% for your business, you can use the Section 179 rule on For 4562, Part I. But you are always limited to the $11,160 amount for depreciation in the first year. It's better to use the Section 179 rule than the 50% bonus rule, because you will get higher depreciation deductions faster.
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