New Car Deduction
Hello, I was wondering if I can deduct a portion of the cost of a new car purchase under section 179 if I have a sole proprietorship and will be using the car 60% of the time for business meetings, site visits, and client meetings?
Quick Answer:
No, you cannot deduct a portion of the cost of a new car under Section 179. Section 179 allows for the immediate expensing of certain *property*, but passenger automobiles are subject to limitations. While you can deduct depreciation, the amount is limited and calculated using a complex formula involving the car's cost and business use percentage. The 60% business use will affect your depreciation calculation, but not eligibility for Section 179 expensing. You should consult IRS Publication 946 for details on depreciation of automobiles.
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
