Can one write off truck purchase? (Tax)

[Tom K.]

Hello all,  last time I met with my accountant, she mentioned if I buy a truck (currently own a small car) that I could write it off as a real estate expense as that is what I will be using it for often.  Is this accurate?  If so, will it make much of a difference come tax time? She mentioned I should buy another property as she said I really need a write off.  I don't agree with buying in this market and overpaying for a property (my market is well overpriced).  So getting back to the original question, if I were to buy a truck, can I use that as my major tax write off since using it for my rental properties?  My accountant does not return my emails or anything as for particulars as to how much it will help.  Yes I'm considering switching accountants but afraid of change sometimes. Thanks!

[Linda Weygant]

If the 179 deduction is what your accountant had in mind, remember that the 179 deduction cannot push you into a loss scenario.

For example, if you are using this in your rental property and you are already in a loss scenario due to depreciation, then buying a vehicle and trying to take a 179 deduction gets you nothing.

If you've got a small profit in your rental, then the 179 can only take you down to $0 profit, so this might be marginally helpful.  But buying a vehicle for tens of thousands of dollars just to get a tax write off is pretty silly if you don't really need it.  

Buying a depreciating asset that you don't really need is a pretty silly way to go, just to get the write off.  In the same way you won't consider buying another rental in your market because it doesn't make sense, you should look at this truck in the same way.

Any transaction you engage in "just" for the write off should really be reconsidered.  Instead, figure out what it takes to manage your business in the best way possible, then look to work those decisions in the most tax advantageous way possible.