I am buying a new truck for my LLC but it will be registered and insured in my name, since it’s mix use, can I use section 179 still?

Forum|Forum|6 years ago
June 4, 2019
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Carl11_2

Employee

No you can't. See http://www.section179.org/section_179_vehicle_deductions.html and pay attention to the third item listed.

rmwilson1966

If I am buying a (new to me) cargo van (less than 6000lbs) in my own name, but I am the sole member of my LLC, can I use section 179... since I would be considered self employed? (100% business use)

TaxGuyBill

Employee

If it is a Single Member LLC (and it has not made any elections to be taxed as a corporation) yes, you can use Section 179 (if it otherwise qualifies, such as business use over 50%).

The IRS basically does not recognize a Single Member LLC as separate from yourself, so you and the LLC are basically the same thing.

Keep in mind that if you use depreciation (Section 179) for the first year, you can never use the Standard Mileage Rate for that vehicle.

madscientist53

one yes and one no, I see the same in my search for the answer to the same question. can someone else weigh in to clarify? preferably with an IRS publication reference,

HopeS

Please clarify your question.

@madscientist53

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madscientist53

to clarify,

the first answer to the question was No, with a link to a general summary page, not to any specific part of IRS code

the second was yes with the detail about the single member llc being a disregarded entity like a sole proprietor,

So the question is which is the correct answer? and if possible which publication is the reference

thanks

HopeS

To be clear, please be aware that a Limited Liability Company (LLC) is an entity created by state statute and not by the IRS. The IRS mostly ignores LLCs for tax purposes and considers two or more people or businesses working together in a trade or business to be a partnership for tax purposes.

Single Member LLC filing requirements

Single-member LLCs are typically treated the same as sole proprietorships. The IRS disregards the LLC entity as being separate and distinct from the owner. Essentially, this means that the LLC typically files the business tax information with your personal tax returns on Schedule C. The profit or loss from your business is included with the other income in your report on Form 1040. You will enter your SMLLC on a Schedule C so you will need Self-Employed (or Home & Business if you download).

If you prefer the tax filing rules of a corporation to a partnership or sole proprietorship taxation, then you have the option to elect corporate tax treatment by filing IRS Form 8832. Once you make this election, you typically cannot change to another tax designation again for five years.

See below IRS Guidance:

IRS Guidance

Also, review the following link:

LLC Tax Filing Rules

@madscientist53

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