Hi. A business use car is classified as what section property? (1245,1250,1231,179, etc) Just curious to see..?
This is a question from a test I have taken already. I was just curious to see what everyone else's answers are.... I said 1245, but I'm not sure why. I said 1245, because 1250 is rental property, 1231 is land, 179 is a type of depreciation. Any help would be appreciated! Thanks5 years ago - 2 answers
it can be depreciated under 1795 years ago
Dear Lisa: 179 is a type of depreciation and can only be used in the first year an asset is placed in service with several limitations. This type of depreciation can be used for cars used in business.
Section 1245 includes all types of personal property including cars. My gut is you got it right!
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent