Question

Used car

Forum|Forum|4 years ago
October 27, 2021
3 replies
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I purchased an old suv so I can go and buy product to resell. Can I use sec 179 to write off the purchase?

Yes, as long as a vehicle is new-to-you and not purchased from a family member, you should be able to claim all or part of the vehicle using the Section 179 deduction.

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R

RAKB02Author

Thanks David.

R

RAKB02Author

Wait another tax expert said yes I can and now you say no. @RossP88 @David_EA Which is it?

R

RossP88

Hi! I am a TurboTax Live CPA. You will be only able to use Section 179 for new property to the business so it is possible to use it if you acquire a used vehicle. That being said, given the lower basis generally of a used vehicle it would be wise to make sure that 179 will result in the biggest tax savings since you would have to forgo the standard mileage rate.

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HollyP

@RAKB02 To clarify further on what @David_EA and @RossP88 said above, the vehicle just must be "new to you" or new to your business to qualify for Sec 179 treatment. For more details please see, What is a Section 179 deduction?

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