title>Tax Guru-Ker$tetter Letter Wizard Animation


Tax Guru-Ker$tetter Letter
Wednesday, November 12, 2008
Bonus Depreciation - New or Used?


Subject:  Special Bonus Dep and Section 179


I saw on your website that used vehicles qualify for section 179 deduction, but will a used vehicle qualify for the 50% special bonus depreciation allowed under the 2008 eco stimulus package…or does it have to be a new vehicle?

Thank you



While Section 179 deductions have always been available for business equipment that had been previously owned by unrelated parties, one of the requirements for special first year bonus depreciation has always been that it was only available for the first user of that specific asset.  So, a used vehicle will not qualify for the special bonus depreciation.

Your personal professional tax advisor should be able to give you more specific advice for your unique circumstances.

Good luck.

Kerry Kerstetter



Super. Great website. Thank you for your response and clarification. Best of luck to you!




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