Cliff Beacham CPA | email cliffbeacham@cpa.com | California |  Tel: (949) 813-1349 
Cliff Beacham Tax and Business Consulting Certified Public Accountants
Section 179 and Trucks that have a GVW of >6,000 lbs
No discussion of section 179 should go without a common FAQ - should I buy a car or a truck? Should I lease or buy? Because of section 179 it is advantageous to buy (not lease) a heavy truck. You can hear the environmentalists groan about the fuel consumption.  AND there is a difference between an SUV and a Truck Light trucks and SUV’s do not qualify for the full allowance (only 25k) So what does qualify and for what? 1. The vehicle must be used  more than 50% for business for the remainder of the time category (eg: a truck (which is a 5yr asset) has to be used for business >50% for the whole 5 years.  You have to keep records to support this and recapture rules apply (which is a 5 year hassle) including any sales price is taxable since you already wrote off 100% 2. For SUV’s,  vans and trucks with <6’ of cargo space, sect 179 is limited to a $25,000 limit For Trucks with over 6’ of cargo space AND GVW of >6,000 lbs you can write off the entire cost including Sales Tax and delivery fees. In addition California limits section 179 itself to $25000 3. Section 179 is limited to the profit of the business without the sect 179 write off (IE: it cannot result in a business loss)  Call Cliff at (949) 813-1349
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Cliff Beacham CPA | email cliffbeacham@cpa.com | California | Tel: (949) 813-1349
Cliff Beacham Tax and Business Consulting Certified Public Accountants
Section 179 and Trucks that have a GVW of >6,000 lbs
No discussion of section 179 should go without a common FAQ - should I buy a car or a truck? Should I lease or buy? Because of section 179 it is advantageous to buy (not lease) a heavy truck. You can hear the environmentalists groan about the fuel consumption.  AND there is a difference between an SUV and a Truck Light trucks and SUV’s do not qualify for the full allowance (only 25k) So what does qualify and for what? 1. The vehicle must be used  more than 50% for business for the remainder of the time category (eg: a truck (which is a 5yr asset) has to be used for business >50% for the whole 5 years.  You have to keep records to support this and recapture rules apply (which is a 5 year hassle) including any sales price is taxable since you already wrote off 100% 2. For SUV’s,  vans and trucks with <6’ of cargo space, sect 179 is limited to a $25,000 limit For Trucks with over 6’ of cargo space AND GVW of >6,000 lbs you can write off the entire cost including Sales Tax and delivery fees. In addition California limits section 179 itself to $25000 3. Section 179 is limited to the profit of the business without the sect 179 write off (IE: it cannot result in a business loss)  Call Cliff at (949) 813-1349
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