Depreciation

You can, but no law as far as I know. Most do a three year depreciation plan. Sometimes it just depends on your tax situation if you want to use more in the first year to lower your tax bill. Get with a good truck accountant, thy can explain better than I can.

 

Ask your accountant.

 

Accelerated depreciation, takes a higher amount in the beginning and tapers off...

 

If you take the whole amount in the first tax year that isn't depreciation, it is usually Section 179 expensing. Trucks are designated to be depreciated over a three year period according to IRS tables. Whether you take straight line (same amount every year) or MACRS (usually 60-30-10 for each of the three years) is up to you.


Instructions for Form 4562 (2018) | Internal Revenue Service

Section 179 deduction dollar limits.

For tax years beginning in 2018, the maximum section 179 expense deduction is $1,000,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,500,000. See the instructions for Part

Modified Accelerated Cost Recovery System
The Modified Accelerated Cost Recovery System (MACRS) is the current method of accelerated asset depreciation required by the tax code. Under MACRS, all assets are divided into classes which dictate the number of years over which an asset's cost will be recovered. Each MACRS class has a predetermined schedule which determines the percentage of the asset's costs which is depreciated each year. For more information, see Part III. MACRS Depreciation, later. For a complete discussion of MACRS, see chapter 4 of Pub. 946.

 

Remember; if your making big truck payments for several years and you take all that write off in year one to reduce your tax bill. You will be trying to make those big payments and a big tax bill in the subsequent years.

This is not necessarily a bad thing, but must be planned for.

 

Facts!!!