# USASection 179 help.

#### Integraoligist

Hi all,
I'm a noob here but we're looking at getting a vehicle for our business as I always hear about everyone writing off the vehiles so it's "like their free in the long run"... so I wanted to do research into this and the below is what I've come up with. Can you take a look at this and see if I'm understanding and calculating this correctly? This is just a basic setup just so I can understand how it works.

Entity: LLC filing as S-Corp
Gross Income \$60,000
Net income after expenses \$45,000

So per the tax bracket:
“\$19,051-\$77,400 \$1,905 + 12% of the amount over \$19,050”
So we would be paying \$7076.40 for the year.

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Now per section 176 if we get the following vehicle for the business

Vehicle
Used Large 6000# SUV \$30,000
Per the code we can deduct the entire \$30,000 immediately

So we would take the \$45,000 net income -\$30,000 = \$15,000

So per the tax bracket:
“\$0-\$19,050 10% of taxable income”
So we would be paying \$1,500 instead of \$7076.40 which would save \$5,576.40

And because we depreciated 100% at the first year, there will be no other deductions after that for the years following.

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Is the way I’m taking this correct? So basically the large SUV would cost \$24,423.60
Thanks all for the help