Tax deduction section 179

[Ruri]

Does anyone use a section 179 tax deduction on their new raptor? From what I'm reading, only 25% of the value can be written off on taxes because gross weight is under 6,000. Can someone confirm this? Does anyone know of any other tax loop holes this truck qualifies for? Thanks!

 

[dlbb]

i never did the 179. i was courier with my old trucks and the miles was max shelter for me.
https://www.irs.gov/uac/2017-standard-mileage-rates-for-business-and-medical-and-moving-announced current year. besides i ran multiple vehicles so stacking up to 4 at a time. 80k miles a year is $40k or so not taxable.


creative math follows. 25% of 70k is 17500. 4 -5 year deprecation max i would assume. 12k miles a year @.54 per mile is $6500 or so a year and can go indefinitely. so really it depends how how much you drive for business, and how long you will leave the raptor as a business asset.

 

[photoneffect]

Does anyone use a section 179 tax deduction on their new raptor? From what I'm reading, only 25% of the value can be written off on taxes because gross weight is under 6,000. Can someone confirm this? Does anyone know of any other tax loop holes this truck qualifies for? Thanks!

I did this. The GVWR of the Raptor is well over 6,000. GVWR is not the same as curb weight. I did a quick Google search for it, but can't find the exact number for it. At one point I found an exact number maybe from my door panel or something and it was over 6,000.

The only slight issue is that the bed isn't technically 6ft, but with a bed extender I think you could call it a gray area for sure.

 

[dlbb]

my 802A screw calculates out to be 7050-1199 = 5851 lbs 149lbs under the weight that gets the ca weight fee on the registration lol. gvrw-payload sticker.

 

[Twisted]

For whats its worth, I had my fully loaded Screw with pretty much all options weighed on a certified scale. It came in at 5840 pounds with 1/2 tank of fuel.

 

[photoneffect]

Just checked my sticker. GVWR is 7050lbs.

The gross vehicle weight rating (GVWR), or gross vehicle mass (GVM) is the maximum operating weight/mass of a vehicle as specified by the manufacturer including the vehicle's chassis, body, engine, engine fluids, fuel, accessories, driver, passengers and cargo but excluding that of any trailers.

 

[lawdog]

Does anyone use a section 179 tax deduction on their new raptor? From what I'm reading, only 25% of the value can be written off on taxes because gross weight is under 6,000. Can someone confirm this? Does anyone know of any other tax loop holes this truck qualifies for? Thanks!

Because of its 5.5" bed, the Raptor as-is qualifies for the $25,000 cap on 1st year deduction for Section 179. Its GVWR is over the 6,000lb minimum, so don't worry about that. There are those who argue a bed extender can allow you to claim the cargo area is over 6', but I haven't seen anyone who can say for sure this works/actually passes muster with the IRS. If it did, you'd be eligible for the full 179 deduction like you would on a larger truck. There's also "bonus depreciation" of 50% in year one for 179 eligible vehicles. However, all deductions are offset by any non-business use percentage, and you must use the vehicle at least 50% of its mileage for business purposes to qualify. If you don't, or even if your business use drops below 50% in any in-service year, you may have to recapture some of the write-off.

It's complicated, and it's worth talking to your accountant about, for sure. It's also a target for tax reformers, so it may not be around in its current form for long...I know the bonus depreciation amounts drop in 2018 and 2019. Good luck!

 

[Ruri]

Thanks! My current CPA is useless, she gives no advice and no ideas to save on taxes.

I interviewed another CPA and he is , more interested in going into business with me rather advising me on tax matters.

I might do my own taxes for 2017.

So according to an article on financial sunami; the GVWR is printed on the door jam sticker like photoneffect said. Since photoneffect said the GVWR is 7,050 lbs. The raptor will qualify for max deductions. This is great news. Can someone else confirm this on their truck? Thanks

I need to get everything squared away before my truck is delivered, hopefully at the end of this month.

 

[dlbb]

jack merit at village tax in Huntington beach has been our guy for 10+ years.

Huntington Beach, CA Tax Preparation and Accounting | VILLAGE TAX & FINANCIAL SERVICES

 

[lawdog]

Thanks! My current CPA is useless, she gives no advice and no ideas to save on taxes.

I interviewed another CPA and he is , more interested in going into business with me rather advising me on tax matters.

I might do my own taxes for 2017.

So according to an article on financial sunami; the GVWR is printed on the door jam sticker like photoneffect said. Since photoneffect said the GVWR is 7,050 lbs. The raptor will qualify for max deductions. This is great news. Can someone else confirm this on their truck? Thanks

I need to get everything squared away before my truck is delivered, hopefully at the end of this month.

The GVWR is not the issue with the Raptor...the 5.5' bed length is. If it were 6', you'd qualify for the full deduction under 179. But, because it's too short, you technically are limited to the $25K cap. Doing your own taxes, you could claim it's just a qualifying F150 and take your chances, but...