2. Buy a New or Used Pickup
- Latoya J. Jessamy
- Dec 22, 2023
- 1 min read
If you or your corporation buys and places in service a qualifying pickup truck (new or used) on or before December 31, 2023, then this newly purchased vehicle gives you four big benefits:
1. Bonus depreciation of up to 80 percent
2. Section 179 expensing of up to $1,160,000
3. MACRS depreciation using the five-year table
4. No luxury limits on vehicle depreciation deductions
To qualify for full Section 179 expensing, the pickup truck must have
A GVWR of more than 6,000 pounds, and
A cargo area (commonly called a “bed”) of at least six feet in interior length that is not easily accessible from the passenger compartment.
Example. You pay $55,000 for a qualifying pickup truck that you use 91 percent for business. You can use Section 179 to write off your entire business cost of $50,050 ($55,000 x 91 percent).
Short bed. If the pickup truck passes the more-than-6,000-pound-GVWR test but fails the bed-length test, tax law classifies it as an SUV. That’s not bad! The vehicle is still eligible for expensing of up to the $28,900 SUV expensing limit and 80 percent bonus depreciation.
