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 advantage of this substantial tax break? Read my new article titled Tax Tips: TCJA Allows Bonus Depreciation on Purchase of Leased Vehicle.

Three ways our fact-filled article can help you:

1. We’ll review some important history. Before the TCJA, your purchase of the vehicle you were leasing didn’t qualify for either Section 179 expensing or bonus depreciation. But times have changed and your deduction possibilities have increased substantially. But remember, though Section 179 expensing is available on both new and used property, you may not use Section 179 expensing for the purchase of the vehicle you lease. You’ll get full details when you read the full article.
2. We’ll explain the new rules on bonus depreciation. The TCJA made two major changes that make the new 100-percent bonus depreciation available on the vehicle you currently lease and now purchase. What’s more, it doesn’t matter if you purchase the vehicle during the lease term or at the end of the lease. All will be explained when you read the full article.
3. You’ll learn the technical reasons why the new bonus depreciation is available. To put it simply, during the lease you had no depreciation interest. And now, thank goodness, bonus depreciation is available on used property. We’ll explain everything in detail when youread the full article.