Expensing a Vehicle for Rental Business
For years I have just been claiming the standard mileage deduction. We drove about 2500 miles last year and we are considering buying a vehicle this year. The vehicle is a CUV that will be under 6000 pounds and the vehicle is over $50K. What type of tax benefit can I expect? I believe there is a reduced section 179 and or bonus depreciation. We will probably use the vehicle either 75% or 100% for business.
Another question, should I get commercial plates?
Is this enough miles to show legitimate need?
We are adding a car because we have a teenage driver. Using it for rentals will conflict with her needs, so we really need a vehicle.