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Painting Biz Owners: Explore depreciation limits on vehicles. #smallbizowners #taxtips

Name: Painting Biz Owners: Explore depreciation limits on vehicles. #smallbizowners #taxtips
Uploaded: 2024-07-08T13:15:03+00:00
Duration: 54 s
Channel: Daniel Honan
Description: This content was created by balanced-griffin. This content was uploaded by balanced-griffin. This is a YouTube video titled "Painting Biz Owners: Explore…

8 Jul 2024 · 1 min

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This content was created by balanced-griffin. This content was uploaded by balanced-griffin. This is a YouTube video titled "Painting Biz Owners: Explore depreciation limits on vehicles. #smallbizowners #taxtips" (created 2024-07-08) featuring a single speaker (labeled SPEAKER A) providing tax advice for small business owners. The speaker explains vehicle depreciation rules, covering bonus depreciation and Section 179: passenger vehicles under 6,000 pounds are limited to a $20,200 maximum first-year depreciation, SUVs over 6,000 pounds (e.g., the Tesla Model X) can avoid that limit, and business-only work vehicles (like cargo vans with only two front seats) can be fully depreciated because they have no practical personal use.

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there is a limit on how much you can depreciate certain vehicles in the first year. If you have a vehicle that can be used for both personal and business use, like a sedan, and that vehicle is less than 6,000 pounds, you are limited to $20,200 maximum depreciation in the first year. That's bonus and Section 179. However, if you have an SUV that weighs more than 6,000 pounds, then there is no limit. Tesla was using this as a selling point for their Model X. Because the Model X was technically over 6,000 pounds. People were buying these, putting them into their businesses, and being able to fully depreciate them in the first year. If you have a vehicle that is not practical for passenger use, let's say a work van that only has the two seats up front and the rest is built out for cargo, even if that's under 6,000 pounds, you can go ahead and fully depreciate that because that is business only. There is no practical personal use there.