Question

Different tax deductions on different business vehicles?

Forum|Forum|3 years ago
May 9, 2022
1 reply
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I’m a 1099 self employed delivery courier. I currently have a van that I use solely for business purposes. If I were to acquire a new vehicle this year for business use, would I use the standard mileage deduction for my current vehicle, and section 179 depreciation for the new vehicle I buy?

leeloo

Yes, you can take two different types of depreciation for two different business vehicles. You must use the property more than 50% for business to claim any section 179 deduction

What are you going to do with your old car? Retire it to personal use? Continue to use both for work? Sell it? At the point in time when you sell, you must recapture the depreciation taken. Even though you used standard miles, you must use the mileage recapure rate found in Pub 463.

https://www.irs.gov/pub/irs-pdf/p463.pdf

S

SavvydespAuthor

Yes, I’ll most likely use both for business, as I already have a personal vehicle besides the van that I currently have. But it’s kind of old and I wanted to buy a new and more reliable van so I can have one for far away delivery areas, and I’ll probably use my current older van for miscellaneous tasks like buying auto parts, but furniture delivery’s etc. I definitely think I’ll keep them, as delivery is my main career. Thanks for the information I really appreciate it!