section 179 vehicle and tax benefits

[Matt Dabek]

I need to change my old SUV that I used 100% for business and I have a couple of questions that I need answer on before I will make my decision.

I base my thoughts on fact that president signs $500,000 section 179 deduction for 2015.

There's four possibilities I take in consideration:

1. Buy SUV (under 6000 lbs gvwr) 

I can write off only 11,160 under section 179.

Q: is this first year only or over few (how many) years?

2. Buy SUV (over 6000 lbs gvwr)

I can write off full amount of purchase under section 179.

Q: is it 100% in first year?

3. Lease SUV (under 6000 lbs gvwr)

I can write off 100% of lease payments.

Q: is there any additional write off related to section 179?

4. Lease SUV (over 6000 lbs gvwr)

I can write off 100% of lease payments as well

Q: is there any difference with leasing SUV over and under 6000lbs?

Thank you for any answers and/or comments.

And Happy Holidays :)

[Nada Mohamed]

Section 179 is great but keep something in mind - you will no longer be allowed to deduct business miles - it is either or - you cannot take two bites from the same apple. I wanted to do this a few years back but the two things that made reconsider are:

1. Incase I was to be audited, proving that I use my car more than 50% of the time for business purpose. I use my car for a lot of personal and a lot of business use as well - however, I would not be willing to gamble that I use it more than 50% for business - we do ALOT of road trips year round.

2. Taking the 55 cent/business mile deduction would no longer be an option. I am not sure if this is a forever issue once you take advantage of Section 179 or just until the vehicle has been completely depreciated. You would have to ask your accountant on that one. 

Best,

Nada