I want to buy a new car before year end for my corporation but I want to get the $25,000 deduction for business expense. What do I need to be aware of?

ANSWER

Expert Thomas Graham iii's Answer:

The main thing you need to be aware of is that the vehicle needs to meet several specifications. The vehicle must be "a 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight." The vehicle also must be placed into service within 2010. (IRS Section 179)

Thomas Graham iii, CPA, CFE

Oklahoma

7 yrs experience

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78 Ans.