Do you have a classic or antique car that you use for business? If you do, can you deduct it the same way you would deduct any car you use in business? The short answer is “yes,” but you must meet two criteria imposed by the courts: The car must be of a type that’s subject to “wear and tear, decay, decline, or exhaustion”The car must be used in your trade or … [Read more...]
Depreciation
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IRS saves many vehicles from the TCJA bonus depreciation debacle
Do you own a tax-law-defined luxury automobile, crossover vehicle, pickup truck, or sport utility vehicle? If you do, this issue of the Tax Reduction Letter makes “must” reading. Why? Because the Tax Cuts and Jobs Act lets you deduct 100-percent of the cost of qualifying assets. It makes one major exception. I’m talking about the $8,000 bonus depreciation cap that … [Read more...]
TCJA One Way to Deduct Personal Vehicle Used for Corporate Business
Do you operate your business as a corporation? Do you own your business car personally? If both answers are “yes,” be aware that thanks to the Tax Cuts and Jobs Act, employee business expenses are not deductible for tax years 2018 through 2025. This means you can’t claim vehicle deductions as employee business expenses. So, are you out of luck? No. If you want … [Read more...]
De minimis or 179 expensing, or bonus depreciation?
Thanks to the Tax Cuts and Jobs Act, you now have three ways to write off the entire cost of certain business assets. Which is the best method for you to use? Let’s take a look … Behind door #1 is bonus depreciation. You can use it to deduct 100-percent of the cost of certain business assets. Behind door #2 is the de minimis safe harbor for certain assets costing … [Read more...]
2018 last-minute vehicle purchases to save on taxes
Do you need a replacement business car, SUV, van, or pickup truck? Then hurry to your dealership and buy now! No. I’m not a car dealer trying to make a sale. I’m an accountant trying to get you a big tax deduction for 2018! Here’s the story… Thanks to the Tax Cuts and Jobs Act, you can now write off the cost of a vehicle-purchase faster than ever before, including, in … [Read more...]