Section 179 deduction for a car titled under both me and my LLC - How does it work?

12 Thanks for this info! Quick follow-up question - does having my personal name on the title affect the percentage of Section 179 I can take? Like if it's dual titled, can I only claim 50% of the deduction or something?

7 The dual title itself doesn't automatically limit your deduction percentage. What matters is the actual business use percentage. If the vehicle is used 100% for business (as you mentioned), you can potentially claim the full allowed Section 179 deduction, subject to the limits for passenger vehicles. Just remember that passenger vehicles have special limits under Section 179. For 2025, you're generally limited to around $19,500 for the first year (combining Section 179 and bonus depreciation), unless the vehicle qualifies as a heavy SUV over 6,000 lbs GVWR, which would allow for higher deductions.

8 How exactly does this tool work? Does it just give general advice or does it actually create documentation specific to my vehicle and business setup?

3 Sounds interesting, but I've been burned by tax software before. How accurate is it with these kinds of specialized deductions? Section 179 has so many specific rules.

15 The tool actually walks you through uploading your specific documents - in my case, I uploaded the vehicle purchase agreement, title, and my business formation documents. It then generates personalized guidance based on your exact situation, not just generic advice. As for accuracy, I was skeptical too initially. What impressed me was that it cited specific IRS regulations and court cases relevant to my situation. My CPA actually confirmed everything it recommended was spot-on. The documentation it created for my files included all the necessary elements to substantiate my deduction in case of an audit.

18 Wait, how does this actually work? I thought the IRS phone system was basically impossible to navigate. Are they somehow jumping the line or what?

9 This sounds like BS honestly. No way they can get you through to the IRS that easily when millions of people are calling. What's their trick?

20 They use a combination of automated calling technology and timing algorithms to navigate the IRS phone system more efficiently than a human can. It's not "jumping the line" in an improper way - they're essentially doing the hold time for you and then connecting you once they reach a human. The service is completely legitimate. They don't access any of your tax information or interact with the IRS on your behalf. They simply navigate the complex phone system and transfer you directly to an agent when one becomes available. It's basically like having someone wait on hold for you using specialized technology.

4 Does the weight classification really make that big of a difference? I'm looking at getting either a crossover SUV or possibly a small truck for my landscaping business.

22 The weight classification makes a HUGE difference. Vehicles under 6,000 lbs GVWR (gross vehicle weight rating) are subject to "luxury auto limits" which cap your first-year deduction significantly - usually around $19,500 combined between Section 179 and bonus depreciation for 2025. Vehicles over 6,000 lbs GVWR that qualify as work vehicles can potentially be eligible for much higher Section 179 deductions - potentially up to the full Section 179 limit which is $1,160,000 for 2025 (though you'd rarely have a vehicle that expensive). For your landscaping business, a small truck over 6,000 lbs could potentially qualify for the higher limits, especially if it's clearly designed and used for business purposes.

17 It depends on how your LLC is classified for tax purposes. If it's a single-member LLC taxed as a disregarded entity, then everything flows through to your personal taxes anyway (Schedule C). In that case, it doesn't matter that your name is also on the title since you and the LLC are the same taxpayer. If your LLC is taxed as an S-Corp or partnership, then it gets more complicated, and you might need to consult with a tax professional about how to handle the split ownership.

This is really helpful advice! I hadn't thought about the business auto insurance angle. Quick question - if I get business insurance on a dual-titled vehicle, does that create any complications with personal liability coverage? I want to make sure I'm not creating gaps in my coverage while trying to establish the business use documentation. Also, when you mention "hybrid policies," do most major insurers offer these or do I need to shop around with specialized business insurance companies?

Good question about liability coverage! Most business auto policies actually provide broader liability protection than personal policies, so you typically won't have gaps - you'll often have better coverage. Business policies usually include things like hired/non-owned auto coverage and higher liability limits. For hybrid policies, most major insurers like State Farm, Allstate, and Progressive offer them, but they might not call them "hybrid" - they're often marketed as "commercial auto with personal use coverage" or similar. The key is being upfront with your agent about the dual titling and mixed use situation. I'd recommend getting quotes from both your personal insurance company and a few commercial insurers. Sometimes the business policy ends up being cheaper than personal coverage, especially if you qualify for business discounts. Just make sure whatever policy you choose explicitly covers the business use you're planning.

Great point about the timing! I made this exact mistake a few years ago with equipment for my business. Ordered in November, didn't get delivered until after New Year's, and had to wait a whole year to claim the deduction. For anyone considering this, also be aware that if you're financing the vehicle, the "placed in service" date is typically when you take possession and start using it, not when the loan paperwork is finalized. So even if there are delays with title processing (which can happen with dual titling), as long as you have the vehicle and start using it for business, you should be good for that tax year's deduction. One more tip - take photos of the vehicle being used for business activities right away. Having timestamped photos from early business use helps establish that placed-in-service date if questions ever arise.

This is incredibly valuable advice! The lease arrangement between yourself and your LLC is a really creative solution I hadn't considered. Quick question - when you set up this internal lease arrangement, did you need to file any specific forms with the IRS or state, or is it just a matter of having a written lease agreement and maintaining proper records? Also, I'm curious about your spreadsheet system. Do you track anything beyond odometer readings and business purpose? I'm wondering if I should also be logging things like maintenance expenses or fuel costs separately for business trips vs personal use, especially with the dual titling situation.