Business Deductions

Hot Topics

Need Some Deductions for 2011?

Don't overlook these!

10 Oddball Tax Deductions

11 Most Overlooked Tax Deductions

Updated for 2011

Depreciating Your Car

<< Previous

Depreciating Light Trucks, Vans, Minivans, and SUVs (weight-rated 6,000 pounds or less fully loaded)

Tax Year 2011:

Here's a link to the 2011 Depreciation Tables for Passenger Cars (Table 3) and Light, Trucks, Vans, and SUVs 6,000 pounds or less (Table 4). They're included in the instructions to Form 4562, page 16.

SUVs Weight-Rated Over 6,000 But Not Over 14,000 Pounds

SUVs and other vehicles weight-rated over 6,000 are not subject to annual depreciation ceilings the way passenger cars and light trucks, vans, and SUVs weight-rated 6,000 pounds or less are.

A first-year-expensing deduction (Section 179) up to $25,000 may be claimed in 2011 for an SUV that is weight-rated over 6,000 pounds, but not over 14,000 pounds, and was placed in service in 2011.

Less Than 100% Business Use

If you use your vehicle less than 100% for business, you must allocate the amount of the Section 179 deduction, bonus depreciation, and regular depreciation, that relates to business use of the vehicle.

For example, if your total annual business miles were 60,000 (personal and business) and your business miles were 48,000, your business-use percentage is 80% (48,000/60,000).

Therefore, you would use the 80% rate to find your Section 179 allowance, bonus allowance, and regular MACRS depreciation via the depreciation table which assume 100% business use.

Car Expenses-Depreciation: Electric Cars-Depreciation Limits

Next >>