Depreciation of SUV > 6,000 lb. GVW

[MikeB_CPA]

I have a situation where a SUV > 6,000 lb. GVW was purchased in September, 2021, and used for business.  They only drove 1,000 miles (90% business use), yet it seems that they can bonus depreciate/Sec 179 almost the entire purchase in 2021.  What happens in future years when (if) business usage drops below the current 90%?  It makes no sense to me that so much can be written off in 2021 with so little mileage driven, but I cannot find a single thing that contradicts this.

Any input/thoughts will be appreciated.  Thanks.

Mike

[dkh · Accepted solution]

You'll have an issue if business use drops below 50%.  Then you have to deal with Sec179 recapture.

[MikeB_CPA]

Thanks.  That was my concern.  Hopefully if that happens they will be someone else's client! 😂

Mike

[abctax55]

@MikeB_CPA 

Make sure (and get it in writing) your client understands that recapture possibility.   I've explained it to clients, then when it IS time for recapture - they get upset.  And they often take the return somewhere else.

(Hmmm - Maybe that's a good way to weed out some clients 🙂