Depreciating a vehicle used for real estate

[Andrew Thomas Vedder]

I am a real estate agent that also has a W2 job. This year I closed on my primary residence where I acted as my own agent and earned a commission so I will have a 1099 from my brokerage at the end of the year. 

I am gearing towards buying my first BRRRR. I want to buy a pickup truck so I can complete some projects on this BRRRR. Can I purchase a truck and depreciate it over five years / use accelerated depreciation to defer the cost?

If I can do this, let’s say I purchase a truck for $50K. Can I depreciate it over five years. For simplicity sake let’s say I sell the vehicle for 20K after it’s fully depreciated after five years. I would owe 25% of that, 5K to the IRS correct?

If anyone could provide guidance on this I’d appreciate it. Thanks BP

[Chris Seveney]

Quote from @Andrew Thomas Vedder:

I am a real estate agent that also has a W2 job. This year I closed on my primary residence where I acted as my own agent and earned a commission so I will have a 1099 from my brokerage at the end of the year. 

I am gearing towards buying my first BRRRR. I want to buy a pickup truck so I can complete some projects on this BRRRR. Can I purchase a truck and depreciate it over five years / use accelerated depreciation to defer the cost?

If I can do this, let’s say I purchase a truck for $50K. Can I depreciate it over five years. For simplicity sake let’s say I sell the vehicle for 20K after it’s fully depreciated after five years. I would owe 25% of that, 5K to the IRS correct?

If anyone could provide guidance on this I’d appreciate it. Thanks BP

 When you get audited, can you show you did not use this at all for personal reasons? Are you gonna track all the miles separately? Not a CPA but you just cannot buy a car and depreciate it