Cliff Beacham CPA | email cliffbeacham@cpa.com | California | Tel: (949) 813-1349
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