Let’s hear it for Section 179 of the IRS tax code! It lets your business deduct the full price of qualifying equipment purchased or financed during the tax year! EXAMPLE: Let’s say your proprietorship bought a pickup truck with a gross vehicle weight-rating greater than 6,000 pounds and a bed six feet or longer. Assuming you use the pickup 100-percent for business, you can … [Read more...]
Section 179
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Get Bonus Depreciation on Purchase of Leased Vehicle
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...]
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...]
Section 179 Deduction: When Your Vehicle Lease Is Not a Lease
Meet taxpayer Arthur E. Boyce. On a day not too long ago he bought a new truck from Dan Wiebold Ford Inc. Then he claimed a $28,749 Section 179 deduction for the cost of the vehicle. “Deduction denied!” ruled the IRS. It claimed that Boyce leased the truck from the dealer. Boyce took the case to court and lost. “Sorry” said the court, “but no $28,749 deduction for … [Read more...]