title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Saturday, November 24, 2007
 
S Corp & Vehicle Sec. 179


Q:



Kerry:

For an S Corp purchasing as automobile in 2006, used more than 50% for business, is there a limitation on 179 deduction?

Thanks

 


A:



There are several limits on Section 179 expenses for cars purchased by an S corp; both at the corp level and at the shareholder's 1040 level.

The amount of the potential Section 179 deduction will also depend on the car's weight.  If it's under 6,000 pounds, the maximum deduction is a tiny fraction of the amount possible for a vehicle weighing more than that much.

I have some general info on Section 179 on my website; but you  really  need to go over any plans in regard to how it would work out for your particular situation with your personal professional tax advisor.  S/he may even find that the deduction could be higher by purchasing the vehicle in your own personal name, especially if the S corp is generating large net losses.

Good luck.  I hope this helps.

Kerry Kerstetter


 


 

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 11/24/2007 05:02:00 PM Send this post:

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