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Section 179Tax break...

JkJT84

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Not going to get into which models specifically cause it’s been previously discussed that two rubicon’s can have different GVWR but if you’re a small business and your Gladiator’s GVWR is over 6000lbs you can use the section 179 tax deduction if you used vehicle for work more then 50% of the time. I’m no tax expert ( just a cop who uses his Gladiator for extra jobs) but look into it, may help you.
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Mark Doiron

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Not going to get into which models specifically cause it’s been previously discussed that two rubicon’s can have different GVWR but if you’re a small business and your Gladiator’s GVWR is over 6000lbs you can use the section 179 tax deduction if you used vehicle for work more then 50% of the time. I’m no tax expert ( just a cop who uses his Gladiator for extra jobs) but look into it, may help you.
I would caution that if you choose the Section 179 deduction and later close or stop earning business income, then you must pay recapture taxes. You could end up paying those recapture taxes when you have a significant drop in income because of that business closure. It could be safer to take straight-line depreciation if you're uncertain how long that business is going to last (especially, say, for a second job).
 
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JkJT84

JkJT84

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I would caution that if you choose the Section 179 deduction and later close or stop earning business income, then you must pay recapture taxes. You could end up paying those recapture taxes when you have a significant drop in income because of that business closure. It could be safer to take straight-line depreciation if you're uncertain how long that business is going to last (especially, say, for a second job).
Thanks for advice, I’ll take that into consideration. (You sound like you know what you’re talking about)
 

CerOf

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Thanks for advice, I’ll take that into consideration. (You sound like you know what you’re talking about)
Mark always knows what he’s talking about. I’ve never met him, but followed his posts and adventures. Just from this, I’d trust him to babysit my kids.
 

Mark Doiron

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Thanks for advice, I’ll take that into consideration. (You sound like you know what you’re talking about)
After I retired from the Air Force I began a small defense consulting business. I had to deal with the complexities of depreciation, depreciation schedules, section 179, etc. The laws have changed--some significantly--since I retired completely, so I would caution to take what advice I give as more advisory for you to research, versus gospel truth. But thank you to CerOf for his kind comment. :)
 

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JAPE

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Concerning the Gladiator:
Some time has passed on this thread. Did anyone get 100% using section 179 on their 2020 taxes?

Are there any changes in the 2021 taxes that would prevent 100%?
 

MrZappo

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Concerning the Gladiator:
Some time has passed on this thread. Did anyone get 100% using section 179 on their 2020 taxes?

Are there any changes in the 2021 taxes that would prevent 100%?
I got 100% in 2020.

I was considering another vehicle as well but it looks like they may have capped it @$25000 now ? Not sure. I just looked into it briefly.
 

Wheelin98TJ

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Max Section 179 deduction for 2021 is $1,050,000.

Max purchases is $2.62m. Anything you spend beyond that will reduce your Section 179 deduction dollar for dollar.
 

JAPE

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I got 100% in 2020.

I was considering another vehicle as well but it looks like they may have capped it @$25000 now ? Not sure. I just looked into it briefly.
Thank you
 

JAPE

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Max Section 179 deduction for 2021 is $1,050,000.

Max purchases is $2.62m. Anything you spend beyond that will reduce your Section 179 deduction dollar for dollar.
Thank you
 

BEERviper

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I’m in this category so following this thread for any updates. I will be talking to my CPA about utilizing the Section 179 deduction on my 6350 lb GVWR Gladiator for my 2021 tax year.
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