I have a question about farm deductions. Last year I purchased a vehicle for my agricultural business and I would like to take the full deduction this year rather than depreciating it? Is that allowed?

The maximum Section 179 expense deduction is $1,160,000. It’s reduced dollar-for-dollar for qualified expenditures more than $2 million.

The Section 179 deduction is limited to:

• The amount of taxable income from an active trade or business
• $28,900 for SUVs and other vehicles rated at more than 6,000 pounds but not more than 14,000 pounds

The $28,900 limit doesn’t apply if your vehicle is:

• Designed for more than nine passengers behind the driver’s seat
• Equipped with a cargo area of at least six feet in interior length that’s not readily accessible from the passenger compartment
• A vehicle that:
  • Has an integral enclosure fully enclosing the driver compartment and load-carrying device
  • Doesn’t have seating rearward of the driver’s seat
  • Has no body section protruding more than 30 inches ahead of the leading edge of the windshield

You can carry over costs for an unlimited number of years that:

• You expense using the Section 179 deduction
• Are limited due to the business income limitations

Vehicle expenses have a separate limitation for the maximum amount of depreciation you can take. The limitation is based on these factors:

• If the vehicle is a car, truck, or a van
• If it’s an electric vehicle
• If you have chosen to take special or bonus depreciation
• If the vehicle is bought or leased

You can carry over any amounts over the maximum that you can’t claim in 2023.