A Little Knowledge IS Dangerous
In 2006 we purchased a SUV that qualifed for accelerated depreciation under IRS sec. 179 for $36K. From what I'd read at that time I thought I could take $18K in sec. 179 depreciation in 2006 and I reasoned I would take the remaining $18K in 2007. So I only took $18K sec. 179 depreciation in 2006 expecting to take the rest in 2007. Then in 2008 I reasoned that we'd do it all over again by purchasing a similar vehicle. Now I'm thinking I messed this up.
First, can I take the remaining $18K in sec. 179 depreciation on my 2007 return? If not, how much can I take?
Secondly, if I trade this vehicle for a similar vehicle in 2008 what would my sec. 179 deduction look like in 2008? If I don't purchase another Sec. 179 eligible vehichle in 2008 but replace this one with a passenger vehicle that will be used 100% of time in business what will be the tax ramifications?
I'm wondering if this is all worth it?
Thank you for your comments?