"In 2018, Jerry claimed a $53,000 Section 179 deduction on a qualifying pickup truck. In 2020, Jerry’s wife drives the truck and Jerry’s business use drops to zero."
Jerry sounds like an idiot!!
Most people dont know about the recapture language and just dont think about it. Buy the truck, section 179 it, drive it a couple years and decide you need a bigger truck and pass that 179 truck on to your kid going off to college. Get audited, and boom, you just created yourself a big tax liability.
179 the truck in your business, Covid hits and your business goes out of business 2 yrs later, and you have to take a w-2 job with some other company. Boom, same thing, huge tax liability. Happens all the time. Literally. Most people do not think past the current moment in time and almost never think of the future ramifications of their current actions. Especially when dealing with taxes.
