top of page

1. Buy a New or Used SUV, Crossover Vehicle, or Van



Let’s say that on or before December 31, 2023, you or your corporation buys and places in service a new or used SUV or crossover vehicle that the manufacturer classifies as a truck and that has a gross vehicle weight rating (GVWR) of 6,001 pounds or more. This newly purchased vehicle gives you four benefits:

 

1.     Bonus depreciation of 80 percent

 

2.     Section 179 expensing of up to $28,900

 

3.     MACRS depreciation using the five-year table

 

4.     No luxury limits on vehicle depreciation deductions

 

Example. You buy a $100,000 SUV with a GVWR of 6,080 pounds, which you will use 90 percent for business use. Your write-off can look like this:

 

·        $28,900 in Section 179 expensing

 

·        $48,880 in bonus depreciation

 

·        $2,440 in 20 percent MACRS depreciation, or $611 if the mid-quarter convention applies

 

So the 2023 write-off on this $90,000 (90 percent business use) SUV can be as high as $80,220 ($28,900 + $48,880 + $2,440).




15 views
bottom of page