Is it time to replace your existing business vehicle?

If so, this article gives you the planning tips you need to realize maximum tax benefits this year.

But don’t wait! To get your get the tax deductions this year, you need (before midnight on December 31) to both

own the vehicle, and

have placed the vehicle in service for your business.

1. Deduct the Personal Vehicle

Here’s an effective strategy that costs you nothing, but can produce solid deductions.

Are you (or your spouse) driving a personal vehicle? Did you buy the vehicle new?

If so, consider converting that personal vehicle to business use before December 31, 2013, to qualify it for 50 percent bonus depreciation,1 which is

unlimited on qualifying SUVs and crossover vehicles with gross vehicle weight ratings (GVWRs) of more than 6,000 pounds;

limited to $11,160 on cars with curb weights of 6,000 pounds or less; and

limited to $11,360 on SUVs, crossover vehicles, and pickup trucks that do not have GVWRs greater than 6,000 pounds.

Example. John and Mary Smith purchased a new $30,000 car two years ago in 2011 while Mary worked as an ... Log in to view full article.