SUV Deduction - Clarification Needed
I have read mixed opinions on SUV deduction eligability concerning income.
My wife and I have W2 jobs in which we earn 140K. I am also a 50% member in an LLC holding rental property. However, once we add in depreciation, our LLC shows a 2K-3K loss.
Can I personally deduct an 6000 lbs vehicle (used for business use) against our w-2 income? Or is this limited to the real-estate activity if it showed a profit? If so, would the LLC need to own the vehicle?
There MAY be a deduction subject to additional limitations, but I think you should talk to your CPA. I doubt this forum was established to provide such specific advice.
In no way am I any sort of expert but in 2003, if you bought the certain sized (translates into huge) vehicle you could depreciate the entire vehicle last year - Section 179 Special Depreciation is what I think it was. As the other poster stated, this is for a CPA to figure out - if you've got a great one like mine, he called me last fall and told me to start vehicle shopping - saved me a HUGE amount of taxes last year
From what I understand the vehicle is a section 179 deduction. 179 deuctions can not be taken if it creates a loss for the business.
In this case you already have a loss, so in my humble and layman opinion, you would not be able to take this deduction.
check it out w/ a CPA.
Since you both have w-2 jobs the following prob. applies.
For example, you are someone else's employee for most of the year. Your wages exceed the Section 179 deduction. You start your own business at the end of the year and purchase equipment and furniture. Even if your new business doesn't generate gross income that year, you can still take the Section 179 deduction on the new equipment and furniture. Why? Your wages exceed the Section 179 deduction.