Search Help


Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.

Article Date:
November 2006


Word Count:
1799

 

 

The Back-End Vehicle Deduction Tax Reduction Plan


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.

Already a subscriber?
Email Address
Password


You’ll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter
Not yet a subscriber?
with a money-back guarantee



Powered by Cranium Softworks - CMS, Subscription Mgmt & Web Development

 

SS