Sure, The Tax Cuts and Jobs Act (TCJA) has hurt small business owners in several ways. But the TCJA has also provided some significant tax savings, one of which we want to highlight now. The good news is that tax reform has added two new provisions that now allow you to claim bonus depreciation on the purchase of a vehicle you’re leasing. Want to learn how to take … [Read more...]
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Caution: 199A Calculator Is Business-by-Business WITHOUT Aggregation
Consider this a personal invitation to use our freeSection 199A Calculator But be sure to use it the correct way! Your 199A deduction requires W-2 wages and/or property (when your taxable income is greater than $415,000 married, filing jointly, or $207,500, filing as single or head of household.) If you earn above these amounts and do not formally elect aggregation of … [Read more...]
Tax Deduction for Classic/Antique Cars Used in Business
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...]
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...]