Imagine this: In 2018, you buy and place in service a $60,000 business car that you use 100 percent for business.

You don’t ELECT OUT of bonus depreciation, and you don’t choose Section 179 expensing (always worthless on luxury limited vehicles, as we explain below).

Without the new IRS rescue, your business car depreciation deductions would have looked like this.1

Outraged

If this happened to you, you would be outraged. The IRS says it this way: “To mitigate the anomalous result … the IRS provides a safe harbor …”

You will like the safe harbor, but first you have to ... Log in to view full article.