If you buy a business vehicle for $35,000 and sell it for $5,300, you have a net business write-off of $29,700. You realize this write-off in your tax return in the following ways:

Depreciation

Section 179 expensing

Loss (or, if you claimed too much depreciation and expensing, gain) on sale

This article

focuses on how you write off the cost of your business vehicles.

assumes that you own your business vehicle.

does not consider gas, oil, repairs, insurance or other costs of operating a vehicle.

In this article, you will learn

how to get maximum cash benefits from the vehicle you are driving today.

how to set yourself up for maximum cash benefits on your next business vehicle.

You would think that lawmakers could make writing off the cost of your business vehicle crystal clear. Wrong. Three different sets of rules enter the equation, making it easy for you to leave money on the table. These rules are

IRS mileage rates

luxury-car limits on depreciation.

section 179 expensing for heavy SUVs

Let’s start with the business vehicle you’re driving now, and let’s focus on depreciation. First, how are you ... Log in to view full article.