Section 179 full vehicle deduction for vehicle used 100% for business but not registered under business
I am looking to get some opinion/feedback on a few deductible costs, primarily related to Mileage deduction versus actual costs as well as section 179 deduction for vehicle.
Client purchased a bread route from a national chain, similar to a pepperidge farm or Sara Lee. Research indicate that the route itself is to be amortized as an intangible over 15 years.
When it comes to actual vehicle costs compared to miles; You are allowed actual costs ->maintenance (gas, oil change, repairs, etc.) lease payment, cost of car, etc. However if miles are greater take miles.
Rather than take depreciation, client prefers to take the full deduction of vehicle (via section 179) in year one. To confirm my understanding, it’s possible to take the full section 179 on the vehicle along with those actual costs versus miles if higher.
In addition, client claims costs are all business (vehicle use 100% for business). The vehicle is not registered under the business despite being used primarily for hauling trailer containing bread to be delivered.
I have recommended placing the vehicle under the business in future years but 100% seems too aggressive from my view for current year but client claims that they can substantiate if questions arise. Based on my recent reading - Nnabugwu C. Eze v. Commissioner; appears IRS has their ways of validating if the need arise
