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You will get to deduct it all, just not 100% in the first year. Our cargo areas do not fit the IRS definition because it is not a 6' or greater bed and there is a passenger area behind the front seats.
First year you get to deduct ($25,000) + (50% of the cost of the vehicle less $25,000) + (first year standard MACRS depreciation which should be an additional 10% after the above deductions due to late year purchase).
Just for fun, lets say that you paid $115,000 for a vehicle. You'd get to deduct:
$25,000 then
50% of $90,000 (115,000 less 25,000) or $45,000, then
10% of $45,000 ($4,500)
In total, first year deduction is $74,500.
On your W-2, your accountant will likely need to show some adjustment to your income due to de minimus personal use of the vehicle. All in all, buying a qualified vehicle isn't a bad deal. If your effective state and federal tax rate is about 50%, then it's like saving $37,000+ off the cost of the above vehicle due to the first year deductions alone.
With all that said, I am not an accountant. I do think I have a pretty good idea of how it works and that you'll find the above is exactly how it works.
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