Lender · Orlando, FL · Member since 2018 · 173 posts · 66 votes
Hey everyone. I will be needing to purchase a truck in the next weekend or two and plan on purchasing it and using bonus depreciation to offset my income. The vehicle will not be over 6,000 lbs (likely a Toyota Tacoma) so I know there will be a limit on the amount of bonus depreciation I can recapture. I do not have a business bank account/business credit card set up yet, but is that necessary to be able to purchase the vehicle and get the tax benefits when I buy it? Do I purchase it now with money saved up in my bank account and then transfer the vehicle to be owned by my company at a later date, or does this all need to be set in place before buying? If you have any questions on the specifics, please let me know. I am sorry if this was unclear.
Accountant · Hunt Valley, MD · Member since 2016 · 49 posts · 17 votes
4y
More than how you pay for the vehicle, it's more important in how you use the vehicle (and documentation - the fun stuff, right?) to support taking the bonus depreciation. For 2022, $19,200 is the limit. Without bonus, it's $11,200.
I don’t usually recommend my clients take auto title in the business.