section 179 deduction : split possible ?

[Ron Singh]

Hello Hello !

Going for a business vehicle purchase and wondering:

if the cost of vehicle is more than business ( property rental ) income in the tax year,

can it be split in two consecutive years ?

for example :

Rental income 60k in 2022

business vehicle Truck cost : 80k , purchase in 2022

using 179 I can only claim upto 60k for tax yr 2022

so the question is, can I claim remaining 20k in next filing for tax year 2023?

if not is there any alternative ?

[Ashish Acharya]

Yes, you can elect up to a certain amount for sec 179 without creating a loss. 

However, if this is a business truck, then you might not even have to do section 179. You might get 100% bonus depreciation on the entire cost without a loss limitation. Please talk to your tax advisor. Bonus is less restrictive vs sec 179.