I would like to buy a used car for my LLC, 100% business use. It would be under 6K lbs. Would I be able to deduct the cost against capital gains profits of my LLC?
Sorry, I know this has been talked about but I was unable to find an exact answer to my scenario.
@John W. , You cannot deduct any cost of buying a car against any kind of capital gain.
However, you can take depreciation deductions:
- You can take section 179 expense and regular depreciation up to $3,160 in the year you purchased a car.
- If the car was new, you could take additional 8000 deductions in the special bonus depreciation. This can only be taken on new asset that you put in service. More simply put, the asset must generally be new, rather than preowned. However, there are some exceptions. New property initially used by a taxpayer for personal use and subsequently converted to business use meets the original-use requirement. Property acquired for use in a taxpayer's business that was previously used by another taxpayer does not qualify regardless of how the previous owner used the property, i.e., for business or personal use.
IRS is more opt to accept mileage deduction as an expense. ~54 cents a mile for combined personal and business EXPENSE.
@Ashish Acharya thank you very much
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