Sect 179 non-lux auto 100% business?

[AZ-Tax]

Upon reading top of page 10-7 of the TTB, my clients non luxury auto (under 6K lbs) should be exempt from any depreciation limitations since the auto was purchased & placed in service at time of purchase (2007) and used 100% for business. Correct?

[solomon]

Upon reading top of page 10-7 of the TTB, my clients non luxury auto (under 6K lbs) should be exempt from any depreciation limitations since the auto was purchased & placed in service at time of purchase (2007) and used 100% for business. Correct?

If the unloaded weight on a passenger auto is under 6K, it is subject to IRC 280F.

[AZ-Tax]

My software allows me to...

Either check the box "yes" or "no" regarding "subject to auto limitations" with out changing the "type of vehicle" or any other data. In this case, the vehicle type is a "A-1" auto under 6000 lbs". If I check yes, the entire cost basis ($30800) is sect 179. If I check no only a $3060 deduction is allowed.

[dodgedipduck]

Upon reading top of page 10-7 of the TTB, my clients non luxury auto (under 6K lbs) should be exempt from any depreciation limitations since the auto was purchased & placed in service at time of purchase (2007) and used 100% for business. Correct?

Where do you get that 100% business use escapes the luxury auto limits?

Unless it is a qualified nonpersonal use vehcile.

[solomon]

Either check the box "yes" or "no" regarding "subject to auto limitations" with out changing the "type of vehicle" or any other data. In this case, the vehicle type is a "A-1" auto under 6000 lbs". If I check yes, the entire cost basis ($30800) is sect 179. If I check no only a $3060 deduction is allowed.

You need to check "NO" if that gets you 3060.

[Bees Knees]

Upon reading top of page 10-7 of the TTB, my clients non luxury auto (under 6K lbs) should be exempt from any depreciation limitations since the auto was purchased & placed in service at time of purchase (2007) and used 100% for business. Correct?

The top of page 10-6 of the TTB lists the vehicles not subject to Section 280F and qualified nonpersonal-use vehicles. If your non luxury auto under 6K lbs meets one of these and is used 100% for business, you could deduct the entire purchase price in year one using Section 179.

If your auto under 6K does NOT meet one of the vehicles listed on page 10-6, it is subject to the 280F limits, even if used 100% for business.