So I realize this is not a tax forum, and perhaps there is a better place on the interwebs to post this question, if so I am open to suggestions.
I read on MW a while back regarding IRS 179 Vehicle Depreciation, quoting the article:
How a big SUV and a home office can cut your tax bill - MarketWatch
'the really big deduction is only available for an SUV, pickup or van with a manufacturer’s gross vehicle weight rating (GVWR) above 6,000 pounds that is purchased (not leased). First-year depreciation deductions for lighter vehicles are subject to skimpy limits of a little over $3,000—just a fraction of what a bigger vehicle can get. '
and if you then leverage a home office and the "over 50% business use test" again quoting the article...
'Sometimes the over-50%-business-use test is difficult to pass. But you’re much more likely to pass if you have an office in your home... The point is, when your home office qualifies as a principal place of business, you can easily rack up plenty of business miles just running around, which makes it that much easier to pass the over-50%-business-use test for your heavy vehicle. '
Then they have a nice warning,
'Warning: Your Section 179 deduction cannot exceed your aggregate net business taxable income (calculated before the Section 179 write-off). However, if you operate as a sole proprietorship, or as a single-member LLC treated as a sole proprietorship for tax purposes, you can count any wages that you earn as an employee as additional business income. If you’re married and file jointly, you can also count your spouse’s earnings from employment as well as any self-employment income. These loopholes reduce the odds that you’ll be hurt by the net business income limitation.'
So my question, is do I qualify for this deduction...
My DH offices out of home full-time and is W2 for a non-profit, she already submits for *partial mileage reiumb (along with cell and internet), and I office 50%+ W2 contractor to another office downtown 12mi away. We bought this 1/2ton pickup new with intentions of only driving for business purposes. (roughly 10k mi in 2014). Now I have an LLC, its active in a sense but I havent reported income or loss on the LLC, nor even reported it to the IRS in about 4years. Could I leverage this LLC I have filed with the IRS to leverage this "loophole".
How likely do you all feel the IRS is to bawk and cause an audit-avert situation if I claim this large vehicle tax? I feel like after running the calculator, I should be able to take a first year decuction of $26,400.
I found some more helpful info on this subject in case people are wondering:
Section 179 and Bonus Depreciation | Section179.Org
I read on MW a while back regarding IRS 179 Vehicle Depreciation, quoting the article:
How a big SUV and a home office can cut your tax bill - MarketWatch
'the really big deduction is only available for an SUV, pickup or van with a manufacturer’s gross vehicle weight rating (GVWR) above 6,000 pounds that is purchased (not leased). First-year depreciation deductions for lighter vehicles are subject to skimpy limits of a little over $3,000—just a fraction of what a bigger vehicle can get. '
and if you then leverage a home office and the "over 50% business use test" again quoting the article...
'Sometimes the over-50%-business-use test is difficult to pass. But you’re much more likely to pass if you have an office in your home... The point is, when your home office qualifies as a principal place of business, you can easily rack up plenty of business miles just running around, which makes it that much easier to pass the over-50%-business-use test for your heavy vehicle. '
Then they have a nice warning,
'Warning: Your Section 179 deduction cannot exceed your aggregate net business taxable income (calculated before the Section 179 write-off). However, if you operate as a sole proprietorship, or as a single-member LLC treated as a sole proprietorship for tax purposes, you can count any wages that you earn as an employee as additional business income. If you’re married and file jointly, you can also count your spouse’s earnings from employment as well as any self-employment income. These loopholes reduce the odds that you’ll be hurt by the net business income limitation.'
So my question, is do I qualify for this deduction...
My DH offices out of home full-time and is W2 for a non-profit, she already submits for *partial mileage reiumb (along with cell and internet), and I office 50%+ W2 contractor to another office downtown 12mi away. We bought this 1/2ton pickup new with intentions of only driving for business purposes. (roughly 10k mi in 2014). Now I have an LLC, its active in a sense but I havent reported income or loss on the LLC, nor even reported it to the IRS in about 4years. Could I leverage this LLC I have filed with the IRS to leverage this "loophole".
How likely do you all feel the IRS is to bawk and cause an audit-avert situation if I claim this large vehicle tax? I feel like after running the calculator, I should be able to take a first year decuction of $26,400.
I found some more helpful info on this subject in case people are wondering:
Section 179 and Bonus Depreciation | Section179.Org
