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NEW SUV and Bonus Depreciation 2013

Posted by Mike C Posted on Mar 04 2013

Buyers of new heavy SUVs put in use in 2013 can still get larger write-offs, since the new tax law extends 50% bonus depreciation through 2013. Assume a firm or self-employed person buys a new $65,000 SUV with a loaded gross weight over 6,000 pounds and places it in service before year-end. First, the business can expense $25,000 per Code Section 179. Second, half the remaining $40,000 cost of $20,000 qualifies for bonus depreciation in 2013. Third, 20% of the $20,000 balance, $4,000 can also be deducted as regular depreciation. If the SUV is used 100% of the time for business, the first year write off is $49,000. Note, the Section 179 deduction is limited to the business income earned during the year.