Anyone Planning to Section 179 their Lightning this year?

[Bakochem68]

I think the other issue, at least for people who aren't self-employed, will be that they won't be able to purchase the vehicle in their business' name unless they had the foresight to make the reservation in that entity's name.

I don't know how it would work to buy it in one's name and then convey it to their business.

I reserved under my name, but purchased under my business name without any issues, but I have small consulting business and am the sole owner operating as an LLC. I drive almost 50,000 miles a year for the business, so hoping to get 3 years out of it.

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[newF150]

We looked into this since my husband has a business and there will be some business use. Since one of his business trips can be 100 miles, I think we'd hit the 50% threshold business use requirement. However, he will likely retire in the next 3-5 years, at which point it would be converted to 100% personal use. Our tax advisor says we'd need to then recapture the depreciation. Also, the vehicle title would need to be in the business name, which I think would limit our financing options. We currently have a rate lock with EECU at 1.99%.... So, it doesn't seem like a good choice at this juncture.

Not an accountant but you could have the mileage log, submit that to the business for reimbursement and the business would write you a check for the standard mileage rate of 62.5 cents per mile. Then that reimbursement expense would be part of business expenses and in the business records. Check with your accountant.

 

[newF150]

So many folks forget about recapture.......

Many people do forget this aspect. My wife totaled a car a few years ago that we had taken a large portion of the section 179 deduction on followed by depreciation the following years. It was replaced with a new vehicle again for business, taking a portion of the 179 deduction but also had to recapture the deduction from the totaled vehicle, or some of it since it was greater than the normal total depreciation calculation accumulated to date. It ends up being a wash generally since we got a replacement vehicle and continue to be self employed. Different if you took a vehicle out of service of the business. In essence some was added back as income but the new 179 deduction from the new vehicle negated that.

 

[cvalue13]

Edit: found this on the link above

Which link?

I don’t see any such thing qualifications for heavy vehicles over 6,000lbs (such as the Lightning)

I now see what you were referring to, but I am uncertain if that is true in 2022. It seems to my reading that the limitation you mention is with respect to the deduction caps (ie there is no cap on a truck with a 6+ foot bed, but there is a cap on one with < a 6 foot bed), but that I think in 2022 specifically there is no such applicable cap to Section 179 - but if I’m wrong on that, for a lightning I believe this cap is ~$26K (at least, that’s what i think it was in 2021)

 

[ExCivilian]

I reserved under my name, but purchased under my business name without any issues

That's good to know. I was under the impression the dealers were being sticklers on name matching between orders and purchases given the incentive structure.

My dealer said he doesn't have any problem placing my wife's name on ours as a second but I have to be on the paperwork since I'm the one who placed the order.

 

[cvalue13]

My dealer said he doesn't have any problem placing my wife's name on ours as a second but I have to be on the paperwork since I'm the one who placed the order.

id hope that a similar logic would apply to someone buying in their name but for and under their signature authority of the company?

of course, any dealer could be a diphead about it for no good reason

 

[asudan]

Generally speaking, section 179 allows one to take a deduction in the current year for the total value of an asset that would normally be depreciated over multiple years.

Correct. And if you do not have enough profit to offset the full purchase price, I understand that you can carryover the additional credit to the next year. Consult your CPA/Tax Advisor however because everyone's situation is different.

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