Under the new depreciation rules you CAN NOT 100% bonus a vehicle under 6,000 pounds. Auto limits still apply to passenger autos. For 2010, that limit is $11,060. This can be made up of section 179, bonus and regular depreciation, but you cannot go over $11,060.
If you have an SUV over 6,000 pounds, you can take section 179 up to $25,000, bonus depreciation and MACRS on the balance. If the SUV was purchased September 9, 2010-December 31, 2010, you can take 100% bonus depreciation on the vehicle. Make sure to mark the appropriate choice in fixed assets on the vehicle tab. Before September 9, bonus is 50%.
The 100% bonus and 50% bonus can be used to create a loss, which will disallow any section 179 you may have intended to take before the 100% bonus period went into effect.
If you have any questions please give our advisors a call today 501.753.9700.
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