Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-12-2015, 06:14 PM
Junior Member
 
Join Date: Mar 2015
Posts: 1
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



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-13-2015, 12:33 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
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.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
business mileage vs commute? and flights question. mileage vs commute? and flights question. mb1985 For 2014 0 01-16-2015 03:45 PM
Switching from salaried employee to contractor non-41 For 2013 3 05-14-2014 05:20 PM
Small Business vehicle purchase (Section 179?) spltend For 2013 0 03-10-2014 12:49 AM
Does an employer have to certify an employee with the Alabama Department of Revenue (ADOR) by proving the unemployment status of the employee? TaxGuru Alabama 0 07-13-2010 08:45 PM
Can a 2009 home purchase be treated as a 2008 purchase to claim Home Owners Credit? TaxGuru Homeowner Tax 0 08-15-2009 12:31 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.