Section 179 Deduction •Special Depreciation Allowance

[Dargo]

Who knows Section 179? I'm not particularly looking to buy a new truck this year, but I've heard all sorts of stories about the special deduction for vehicles that weigh over 6000 pounds. Apparently this falls under the Section 179 Deduction parameters. From what I've heard, if I buy a new 1 ton dually yet this year, I can depreciate nearly the entire amount for the 2006 tax year? I'm really confused and unsure about this deduction.

Basically, I don't need to buy a new truck. However, if I can deduct nearly the entire amount for the 2006 tax year (and that break goes away next year), I'm going to buy a new truck this week. Can anyone shed any light on this issue for me? With taxes the way they are, I'm looking at it as if the government will basically cover about 1/3 of the cost of a new truck for me. Right?!??

 

[Melensdad]

Dargo, I got rid of my C70 convertible and bought the Touareg for exactly the reason you outline. In the case of my situation, it was a little bit of an unusual one and you may not be in the same situation that I was in, but the Touareg was purchased as a company vehicle, yielding a $10K profit that I was able to drop to the bottom line after the sale of the C70 (despite the fact that the Touareg cost more than the C70 sold for). If you are depreciating, then you obviously are buying the truck inside of a business entity so you may want to look at this. Also dig into the limits of it, if you don't need a vehicle now, and if the deduction is still available in '07 there is no reason why you can't wait until next year.

 

[XeVfTEUtaAqJHTqq]

What's your accountant say? If you don't have a good accountant, find one! They are worth their weight in tax relief!

 

[Markpeter77]

Who knows Section 179? I'm not particularly looking to buy a new truck this year, but I've heard all sorts of stories about the special deduction for vehicles that weigh over 6000 pounds. Apparently this falls under the Section 179 Deduction parameters. From what I've heard, if I buy a new 1 ton dually yet this year, I can depreciate nearly the entire amount for the 2006 tax year? I'm really confused and unsure about this deduction.

Basically, I don't need to buy a new truck. However, if I can deduct nearly the entire amount for the 2006 tax year (and that break goes away next year), I'm going to buy a new truck this week. Can anyone shed any light on this issue for me? With taxes the way they are, I'm looking at it as if the government will basically cover about 1/3 of the cost of a new truck for me. Right?!??

Thank you for sharing a nice post. Business owners often benefit greatly from Section 179 tax deductions. There is a a lot of difference between the amount a tax payer deducts by the depreciation methods and amount allowed by the Section 179 deduction is large enough. By Section 179 deduction, the taxpayer can easily lower his or her income tax for the year which is very useful for years that the taxpayer wants to pay less taxes.