December 31 is right around the corner. Which means now is the time to take advantage of vehicle deductions.
I’m talking about extremely valuable deductions you may be able to take on your currently-driven business cars, SUVs, trucks, and vans.
But time is running out and you need to act before the end of the year. That’s why I urge you to take a minute right now and read my new article titled Tax Tips: 2018 Last-Minute Year-End Tax Deductions for Existing Vehicles.
Four strategies for getting deductions
on the vehicles you’re driving now
Strategy #1: Take your child’s car and sell it. (It’s not so cruel. You can always buy them a new one!) Perhaps your child or spouse is driving your old business vehicle. If that’s the case, it could be the source of a big tax loss. You’ll get all the details when you read the full article.
Strategy #2: If you’re self-employed, use the “buy and sell” strategy. The Tax Cuts and Jobs Act eliminated the tax-deferred exchange for vehicles. Which means many self-employed taxpayers will come out ahead because their trade-ins automatically take advantage of the buy-and-sell strategy we’ll explain fully when you read the full article.
Strategy #3: Cash in on past vehicle trade-ins. If you have been trading in your cars, calculate your adjusted basis and compare it to your possible selling price to see your expected gain or loss on the sale (including trade-in). If the loss is large and you need a tax deduction, sell or trade in that vehicle by December 31. You’ll get the whole story when you read the full article.
Strategy #4: Put your personal vehicle in business service. Lawmakers reinstated 100-percent bonus depreciation for 2018. That creates a winning strategy that doesn’t cost you a penny but can produce solid deductions. We’ll explain everything in detail when you read the full article.