Truck first year depreciation

[AccTaxMan]

A 2009 Freightliner Cascadia

http://www.commercialtrucktrader.com/find/listing/2009-FREIGHTLINER-CASCADIA-109443648

Is this a listed property for depreciation purpose?

[mactoolsix]

Per Pub 946 NO

Excepted vehicles.
Other property used for transportation does not include the following qualified nonpersonal use vehicles (defined earlier under Passenger Automobiles ).


Any vehicle with a loaded gross vehicle weight of over 14,000 pounds that is designed to carry cargo.

(among lots of other vehicles)

Mike

[AccTaxMan]

Excepted vehicles.
Other property used for transportation does not include the following qualified nonpersonal use vehicles (defined earlier under Passenger Automobiles ).


Any vehicle with a loaded gross vehicle weight of over 14,000 pounds that is designed to carry cargo.

(among lots of other vehicles)

Mike

Thank you Mike.

In that case, I think the full amount of the truck cost ($60,000) can be expensed in the first year based on sec 179. Please correct me if I am wrong.

By the way, does the taxpayer has the right to arbitrarily decide the amount he wants to expense based on Sec 179? For example, he elects to expense $20,000 based on Sec 179 and leave the other $40,000 to be depreciated under regular depreciation method. Is it allowable?

[mactoolsix]

Pub 946

Maximum Section 179 for 2012 is 500,000 - limited by the business taxable income:

Figure taxable income without regard to any of the following.

The section 179 deduction.

The self-employment tax deduction.

Any net operating loss carryback or carryforward.

Any unreimbursed employee business expenses.

And Yes the amount is arbitrary

Mike

[Y2KEA]

Over the road tractors are 3 year property.