How often do you say, “Thank goodness for the IRS?” Not very often I’m sure. But you will say that when you see how the IRS saves your bacon when you claim the recently enacted 100% bonus depreciation on your business car!
I’ll explain it all when you read my new article titled, Tax Tips: New Law Inadvertently Kills Business Car Depreciation; IRS Rescues Deductions with a Safe-Harbor Escape.
Three ways our fact-filled article can help you:
- We’ll explain the bad news and the good news. The bad news is that the new 100% bonus depreciation contains a big trap that eliminates depreciation on your business car for five years. The good news is the IRS recognized this unfair depreciation-elimination trap and created an escape with its newly issued safe-harbor provision. All will be explained when you read the full article.
- We’ll tell you what to do if you’re a calendar-year taxpayer who took 100% bonus depreciation on a luxury-limited business car, truck, or van in 2010. If you did, you need to apply the new safe-harbor escape in your 2011 tax return. If you have already purchased and placed in service (or you plan to buy and place in service) a luxury-limited business car, truck or van in calendar 2011, you need to apply the IRS safe-harbor in your 2012 tax return. You’ll get the whole story when you read the full article.
- We’ll show you the two safe harbor escape routes. To solve the problem created by faulty legislation, the IRS had to create two different safe harbor escape routes. You don’t get to choose the route. Your cost of vehicle determines which of the two escape routes you can take to avoid loss of five years of depreciation. Confused? We’ll explain everything when you read the full article.