Buying a used car for LLC, %100 business use

Rental Property Investor · Buffalo, NY · Member since 2017 · 257 posts · 130 votes

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.

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
8y
@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.
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Sam Shueh
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
8y
IRS is more opt to accept mileage deduction as an expense. ~54 cents a mile for combined personal and business EXPENSE.
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John W.
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Rental Property Investor · Buffalo, NY · Member since 2017 · 257 posts · 130 votes
8y
@Ashish Acharya thank you very much
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