Estimated tax tip savings. Use these strategies to easily avoid $2,000 to $8,000 in unnecessary taxes when you sell your business car or truck. As you’ll see, your exact tax savings will vary depending on certain facts.
When you sell your business car or truck, you could create thousands of dollars of extra tax—or create thousands of dollars of tax deductions. Each situation varies. This means you have to know some simple facts about your car or truck to plan correctly.
With the right tax planning, you can either
escape tax using a like-kind exchange if you owe tax on the transaction or
take extra tax deductions if you find that you would have a deductible tax loss if you sold the vehicle to a third party.
Back to the Basis
Before you can determine whether to escape tax or take extra tax deductions, you have to know two ... Log in to view full article.