Need advice: Section 179 deduction for Truck

[Nathan Gesner]

I need to spend some money and cut down on taxes. CPA advises I purchase a vehicle so I'm curious about the advantages and I'm very short on time because it has to be done by December 31st.

I understand what type of vehicle qualifies. Let's assume my company purchases a qualified truck for $50,000 and puts it into service on December 31st. As I understand it, Section 179 allows a maximum deduction of $25,000 for this type of vehicle. However, I can also use bonus depreciation and effectively write off the entire purchase amount of $50,000. 

If we're in the 24% tax bracket, deducting the $50,000 would save me $11,000 in taxes which means I've essentially purchased the truck for $39,000.

Any advice? Am I missing anything? Would there be better benefits if I were to lease the vehicle or spread the standard depreciation over a period of five years?

Any recommendations on a Truck? I'm leaning towards the F-150.