Questions:

Do you need a replacement business car, SUV, van, or pickup truck?

Do you need tax deductions this year?

Do you need a tax credit to offset what you owe to the IRS?

If you answered yes to any of these questions, you need to examine this article and get ready to smile.

Thanks to the Tax Cuts and Jobs Act (TCJA), you can write off the full business cost of certain vehicles, 89 percent of other vehicles, and up $20,200 for other vehicles.

If you plan on purchasing an electric vehicle or a plug-in hybrid electric vehicle, you may qualify for a tax credit of up to $7,500.

Get the Timing Right

Don’t procrastinate. If you want the vehicle deduction and/or the tax credit, you need to

own the vehicle, and

place it in business service

on or before December 31, 2023.

To ensure compliance with the “placed in service” rule, drive the vehicle at least one business mile on or before December 31, 2023. In other words, you want to both own and drive the vehicle to ensure that it qualifies for the big deductions.1

Now that you have the basics, let’s get to the tax deductions. ... Log in to view full article.