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Old 03-12-2015, 06:14 PM
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Section 179 for salaried w2 employee for new commute car purchase

Hi,
I am salaried employee in W2 with my employer. In year 2014 I bought a used car (Honda CRV 2009) for use to commute to my work and back home. My earlier commute car was in an accident and totaled in 2014 due to which I had to buy the replacement commute car. The replacement car is never used for personal purpose and only used for commute to work and was put in to commute use immediately after the purchase in year 2014.

The earlier car which was totaled in year 2014 was never claimed in section 179 in past tax years.

Is the section 179 one-time deduction of the purchased car's cost applicable in my scenario ?

Thanks in advance for your time and looking into it.
Thanks
Indra



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Old 03-13-2015, 12:33 AM
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Join Date: Oct 2010
Posts: 4,835
I am salaried employee in W2 with my employer. In year 2014 I bought a used car (Honda CRV 2009) for use to commute to my work and back home. My earlier commute car was in an accident and totaled in 2014 due to which I had to buy the replacement commute car. The replacement car is never used for personal purpose and only used for commute to work and was put in to commute use immediately after the purchase in year 2014.=======>>>>>>>>> Changing its use from personal to business use does not qualify the cost of your car for a section 179 deduction. However, you can claim a depreciation deduction for the business use of the car.

Is the section 179 one-time deduction of the purchased car's cost applicable in my scenario ?========>>>>>>>>>as you are an employee, you can deduct the expenses as an itemized deduction on sch a aslongas you itemize it. You would need to file Form 2106 and take the deduction as a job-related itemized deduction on Sch A so no sec 179 expensing as an emolyee unless you itemize deductions. So, you can claim Section 179 for business equipment, including the vehicle, that you use as a W-2 employee; but it won't save you as much in taxes as it does for a self employed person.



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