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    Truck first year depreciation

    A 2009 Freightliner Cascadia



    Is this a listed property for depreciation purpose?
    Last edited by AccTaxMan; 03-17-2013, 07:12 PM.

    #2
    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

    Comment


      #3
      Originally posted by mactoolsix View Post
      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?

      Comment


        #4
        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
        Last edited by mactoolsix; 03-17-2013, 08:35 PM.

        Comment


          #5
          Over the road tractors are 3 year property.

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