Keep in mind that vehicles are subject to limitations on any of the depreciation deductions.
The vehicle must be used at least 50% for business to qualify.
Also, there are top end deductions for different classes of vehicles. For example, small cars under 6,000 lbs., Luxury autos, are capped at $18,000 of depreciation in the first year, $10,000 if bonus deprecation is not taken due to luxury auto limitations, the IRS has imposed to help discourage the depreciation of high value vehicles.
SUVs and crossovers with Gross Weight above 6,000 lbs. are capped at $25,000 if Section 179 is taken. SUVs and crossovers with Gross Weight above 6,000 lbs. do not have a cap if Bonus Depreciation is taken.
Pickups and vans with no rear passenger seating that are above 6,000 lbs. also do not have a cap.
Every major brand of pickup (1/2 ton and up) are over 6,000-pounds for purposes of this deduction.
When you get down to the mid-sized trucks you might be surprised to find that some of these are right on the line.Â
If Section 179 or Bonus depreciation is used standard mileage rates cannot be used for any periods after the year deprecation is taken and actual auto expenses (fuel, tires, repairs, etc.) must be tracked going forward.