If you’ve been thinking about purchasing a new heavy-duty van, truck, or SUV for business use, now’s the perfect time to buy. With the year coming to a close, you might be able to take advantage of considerable tax breaks on new heavy vehicles acquired for business purposes before the end of the current tax year.
“Heavy” is the operative word here, as vehicles qualifying for up to $25,000 in write-offs must weigh in at more than 6,000 pounds. Surprisingly, even trucks and SUVs weighing less than that are considered luxury vehicles under the law and are not eligible for the Section 179 deduction.
To limit the number of business owners using SUV purchases as a tax shelter, Congress has capped the deductible amount at $25,000. However, there are some exemptions that may allow you to increase your deductible vehicle expenses even further. Depending on the seating arrangement and cargo space of your new business vehicles, you may be eligible to claim an even larger portion of your vehicle’s cost than the existing limits allow. The rules are quite specific, so it’s important to understand them before you buy.
There are just four weeks left until the end of December, so get in touch with a tax professional today to find out whether or not your business tax bill can benefit from a big-ticket vehicle purchase. In and around Arlington, Taxation Solutions, Inc. is the company to call anytime of year for tax guidance you can trust. When buying, selling, or leasing a vehicle, talking to us first can mean greater tax savings for you!