I have been reading some conflicting information regarding section 179 For businesses leasing vehicles. On the Bank of America website it states you can lease and use section 179 as depreciation and I also saw on another website regarding tax deductions.
I’m about to get a truck and want to make sure if I lease I can deduct it using section 179 as we had a really good year in business and it would be great to have a decent write off
You can apply section 179 to non-tax capital leases, which I don’t believe car leases count as. It’s something more commonly set up in heavy equipment leases, etc.
What is your business? Certain fields like construction make it easier to write-off something like a truck versus a business where a truck is not necessary.
To clarify by easier I mean less likely to raise a red flag for audit.
For example if you own a construction business it’s easier to get away with writing off a leased truck versus a luxury car say for example a S Class.
Only your cpa/accountant can tell you what works best for your situation.
My dad transitioned from flipping to new construction and government contracts about 15 years ago but even back then him and his business partner were able to write off a couple of trucks.
Now it’s just easier to write off 2 “personal trucks via lease” and then buy new trucks for the foremen/workers every few years and write those off as a depreciating asset.
I’m trying to figure out if I can lease a truck and write off the entire cost of the truck in the first year or if I’m not gonna be allowed to do that.
Why do you insist on getting an answer to a complicated tax question in a discussion forum from non-tax experts who have repeatedly ask you to contact a tax pro or CPA?
You can write off a tricycle if it’s a legit business expense. The 6000 pound limit is for doing accelerated depreciation on a purchase. Has nothing to do with a lease.
It’s a tax loophole in how depreciable assets are deprecated, where you can accelerate 100% into year 1 for FARM EQUIPMENT (which trucks and SUVs over 6,000lbs can qualify for).
Still
Nobody on a message board has enough information to answer this for you. Legal entity type? Cash vs accrual? What depreciable assets are already on your balance sheet? Etc.
And if OP is running a business, considering this, and doesn’t have an accountant: my priority would be finding an accountant with whom to have a relationship before I worried about accelerating 5-figures of depreciation (assuming your fiscal year is also calendar year, it’s only July).