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March 11, 2021
Question

I purchased a vehicle in 2020. It's an SUV 6500 pounds. I took a tax class and I thought I that I could deduct the purchase price as a deduction. Is that true?

  • March 11, 2021
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1 reply

JohnB5677
March 11, 2021

Yes. Provided you are writing it off as business equipment.

 

In order to deduct the full cost of your business vehicle you will have to elect the section 179 deduction. Keep in mind that if you take a section 179 deduction you cannot use the standard mileage rate to calculate your car expenses, you will have to enter actual expenses.

 

In addition, if you claim either a section 179 deduction or use a depreciation method other than straight line in the first year the car is in service, you cannot use the standard mileage rate on that car in any future year.

 

Please reference IRS Pub. 463 as a guide

 

Can write off the full cost of my business vehicle? (intuit.com)

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