Here’s an easy question: Do you need more 2020 tax deductions?
If yes, continue on. Next easy question: Do you need a replacement business vehicle?
If yes, you can simultaneously solve or mitigate both the first problem (needing more deductions) and the second problem (needing a replacement vehicle), but you need to get your vehicle in service on or before December 31, 2020.
Make sure to find the right vehicle for the deduction you desire by reading my new article titled Tax Tips: 2020 Last-Minute Vehicle Purchases to Save on Taxes.
Three suggestions you should consider:
- Buy a new or used SUV, crossover vehicle, or van with a gross vehicle weight rating (GVWR) of 6,001 pounds or more. This newly purchased vehicle gives you up to four possible benefits. We’ll tell you what they are when you read the full article.
- Buy a new or used pickup. If you or your corporation buys and places a qualifying pickup truck, new or used, into service (on or before December 31, 2020), this newly purchased vehicle will deliver one or more of four big benefits. NOTE: To qualify for full Section 179 expensing, the pickup truck must meet two criteria. We’ll tell you what they are when you read the full article.
- Buy a depreciation-limited new or used car. If you or your corporation buys and places into service a new or used passenger vehicle (such as a car with a curb weight less than 6,000 pounds—or a pickup, an SUV, or a van with a GVWR of 6,000 pounds or less) on or before December 31, 2020, you can add up to $8,000 in bonus depreciation to your deductions as we explain in the full article.