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...]
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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...]
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...]
Five last-minute year-end business deductions
Who says year-end tax planning has to be difficult? If you know the tax law inside out (and we do!), there are easy steps you can and should take right now that will cut your tax bill big time. What money-saving strategies can you put to work in the final days of December 2018? You’ll find out when you read my new article titled Tax Tips: 2018 Last-Minute Year-End … [Read more...]