Your choice of tax deduction on your business vehicle likely depends on your knowledge of how tax law classifies your vehicle.
You can buy what you think is a 100 percent tax-deductible pickup truck, but tax law might treat that truck as a sport utility vehicle (SUV) that limits your tax write-off.
Similarly, you might buy what you think is an SUV, but tax law might treat that SUV as a car subject to the luxury auto depreciation limits.
This article will clarify the tax deductions available for each type of business vehicle. If you are the owner of a business, the rules in this article apply to your proprietorship, S corporation, C corporation, or LLC.
You will learn what tax law considers an SUV, a pickup truck, a van, and a car. You will learn how your tax write-offs increase and decrease depending on the vehicle you purchase, its weight, and whether it is new or used.
This tax guide will show you when 100 percent bonus depreciation applies and when tax law puts a limit on the bonus that reduces the 100 percent write-off, often substantially.
As a business owner, you need to know these rules so you ... Log in to view full article.