Question

27	Jeremy purchased and put his heavy SUV into service in May 2018. The basis of his SUV is $45,000. He would like to maximize his §179 expense. He used the SUV 80% for business. How much §179 expense deduction may he claim?
a	$0
b	$18,000
c	$20,000
d	$25,000

Choice "C" $ 20,000 - is not correct. I chose that on my test and it marked as wrong.

Intermediate Vehicle Expense (2019)

c

c

Answer 1

Answer is option B: The maximum deduction that can be claimed in the first year has been limited to $ 18,000.

Maximum Depreciation Deduction in 2018 for Vehicles Weighing 6,000 Pounds or Less (cars, light tucks, or vans):

The ceiling on depreciation for a vehicle placed in service in 2018 is generally $10,000, reduced by personal use. However, if the vehicle is used more than 50% for business in 2018, the first-year dollar limit is increased by the bonus depreciation allowance to $18,000 ($10,000 plus $8,000), reduced by personal use. You can elect not to claim the bonus allowance.