1099 Sole Prop ($30k income) + W2 ($110k) + Spouse W2 ($50k) = **$190k MFJ total.
Buying a 2022 Ford Maverick ($23k, <6,000 lbs GVWR) for **80%-90% business use. I currently have a 2006 F150, kinda old.
Under 2026 OBBBA rules, is the combined Section 179 + 100% Bonus Depreciation cap for light trucks still $20,200 (prorated to \~$16,160)?
Planning Actual Expenses for Year 1. Is an $8,500 total reduction in 2026 tax liability realistic at the 24% bracket? Also, if I take Actual Expenses now, am I permanently locked out of the Standard Mileage Rate for the life of the vehicle?
Bonus: If this generates a refund, will the IRS automatically apply it to my back taxes from previous years? This is the goal – pay off previous tax debt and also reduce tax liability for this year
Posted by 11KingMaurice11
1 Comment
Yes, claiming actual vehicle expenses in year one precludes ever using standard mileage rate for that vehicle.
Yes, overpayments get applied to outstanding balances first. If you have an installment agreement in place, it’s better to try to avoid overpaying. If you have extra cash to send to IRS, minimize interest by paying it into the installment agreement instead of current year estimates.