Buying a car and writing it off

[Ryan Pryor]

Hi all, I was listening to a podcast talking about if you bought a new SUV and put your business information on it, you could write it off 100%. Does anybody know if this is true? Does it have to be a LLC? Or would just wholesaling information be enough if it is true? Thank You In Advance, Ryan

[Ashish Acharya]

@Ryan Pryor , does not have to be in the LLC.

If your business is wholesaling, yes you can depreciate the SUV. it is not an expense, its a depreciation. However, there are  $ limitations if it is under 6000 (generally) LBS. 

If your SUV is over 6000lbs - you might be able to write off 25k in a year as depreciation. 

Amount of depreciation is also dependent on your % business usage as well.  ( if less than 50%, cannot use section 179 expense, but can use a  bonus depreciation) 

You can either claim a bonus depreciation or a section 179 depreciation. Both of them have limitation and one might be better or applicable for you depended on your income level and future usage of the SUV. You need to talk to your professional.