By topic: Section 179

2019 Last-Minute Year-End General Business Income Tax Deductions

Your year-end tax planning doesn’t have to be hard. This article takes your daily business activities and identifies easy year-end tax-planning moves you can make today. Our five strategies will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2019 cash.

2019 Last-Minute Vehicle Purchases to Save on Taxes

Here’s an easy question: Do you need more 2019 tax deductions? If yes, continue on. Next easy question: Do you need a replacement business vehicle? If yes, you can simultaneously solve or mitigate both the first problem (needing more deductions) and the second problem (needing a replacement vehicle), but you need to get your vehicle in service on or before December 31, 2019. This article helps you find the right vehicle for the deduction you desire.

Impact of Death, Retirement, and Disability on the 179 Deduction

Have you purchased vehicles for use in your business? Did you claim Section 179 deductions on them? What happens to your Section 179 deductions if you retire or become disabled before the end of the vehicle’s useful life? What if you die? This article tells you what you need to know.

TCJA Allows Bonus Depreciation on Purchase of Leased Vehicle

Good news, bad news! Bad news: as in prior years, buying the vehicle you lease destroys any opportunity to claim Section 179 expensing. Good news: the TCJA added two new provisions that now allow you to claim bonus depreciation on the purchase of a vehicle that you lease.

Q&A: Improvement Property Update

Congress wanted qualified improvement property to have tax-favored status under tax reform. But Congress made an error in writing the Tax Cuts and Jobs Act and made improvement property treatment worse than before. Did Congress fix its goof?

IRS Saves Many Vehicles from the TCJA Bonus Depreciation Debacle

Tax law limits depreciation deductions on what it considers luxury vehicles. The Tax Cuts and Jobs Act created 100 percent bonus depreciation, and that means you can totally deduct the cost of qualifying assets. One major exception is the $8,000 bonus depreciation cap that applies to a tax law-defined luxury automobile, crossover vehicle, pickup truck, or sport utility vehicle (SUV).

TCJA One Way to Deduct Personal Vehicle Used for Corporate Business

If you operate your business as a corporation but own the business car personally, you have no vehicle deduction possibility without corporate reimbursement, because the Tax Cuts and Jobs Act does not allow employee business expenses for years 2018 through 2025.

Section 179 Deduction: When Your Vehicle Lease Is Not a Lease

Is your lease a lease? Are you sure? There are lots of funny rules that make what looks like a lease a purchase—and make what looks like a conditional sales agreement a lease. This article shows you what happened to Arthur Boyce and gives you a number of tips to help you avoid his plight.

Q&A: De Minimis or 179 Expensing or Bonus Depreciation?

The Tax Cuts and Jobs Act (TCJA) tax reform gives you bonus depreciation as a method for deducting 100 percent of the cost of certain business assets. You also have the de minimis safe harbor for certain assets costing $2,500 or less ($5,000 or less with the applicable financial statement). And finally, the TCJA tax reform enhanced the Section 179 deduction. Learn how to identify which of the three is the best choice for you.

2018 Last-Minute Vehicle Purchases to Save on Taxes

Here’s an easy question: Do you need more 2018 tax deductions? If yes, continue on. Next easy question: Do you need a replacement business vehicle? If yes, you can simultaneously solve or mitigate both the first problem of needing more deductions and the second problem of needing a replacement vehicle, but you need to get your deduction in place on or before December 31, 2018. This article helps you find the right vehicle for the deduction you desire.

2018 Last-Minute Year-End General Business Deductions

Your year-end tax planning doesn’t have to be hard. This article takes your daily activities and identifies easy year-end tax-planning moves you can make today. Our five strategies will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash.

Q&A: Qualified Improvement Property Snafu?

Congress created the qualified improvement property category in the Tax Cuts and Jobs Act with the idea that you could fully expense such qualified property with bonus depreciation. But Congress made an error in the law, and now you can’t use bonus depreciation for qualified improvement property. Don’t worry—we’ll explain how you might be able to fully expense it anyway.

Tax Reform (TCJA) Expands Your Section 179 Deduction Privilege

The new and improved Section 179 deduction gives you more ways to take advantage of immediate tax deductions. It’s somewhat like having a flexible tax shelter in your back pocket for when you need it (and also need the property, of course).

Tax Reform Does Much to Help Your Rental Real Estate

The recent tax reform, known as the Tax Cuts and Jobs Act (TCJA), added some good benefits to your real estate rentals, both commercial rentals and residential rentals. Notably, your qualified business income from your real estate rentals creates a possible 20 percent tax deduction with no effort on your part. And if you want less taxable income, the TCJA gives you enhanced bonus depreciation and new avenues for Section 179 expensing.

Are Your Rental Properties a Business? If So, You Win

If you own rental properties, you don’t want the tax law to call the rentals an investment. Instead, you want the rental properties to qualify as a trade or business so that you achieve tax-favored Section 1231 treatment and many other tax breaks.

Q&A: 33 Last-Minute Tips to Save on Your 2017 Taxes

If you are looking for some last-minute tips to save on your 2017 federal income taxes, this article has what you need.

Act Now! Get Your 2018 Expensing in Place

If you have not done so before, make sure to put your safe harbor de minimis expensing election in place now. The new de minimis rules make your tax record keeping easier. With this safe harbor expensing, unlike with Section 179 expensing, you don’t need to track the assets and keep them in a depreciation schedule.

Heavy Vehicle + Deductible Home Office = Major Tax Savings

As a small-business taxpayer, you likely have control of your business. With control, you can do much to increase your tax benefits with a qualifying heavy vehicle and a certain type of office in your home. So, if you’re looking for some major tax savings this year, you will find a path to them in this article.

Avoid Lost Deductions When Corp. Vehicle Is in Your Personal Name

Do you operate your business as a corporation but own the vehicle you use for the corporate business in your personal name? If so, to avoid losing your rightful deductions, you need to have the corporation reimburse you for business use. The corporation can use one of two methods for the reimbursement.

Put Your $2,500 Expensing in Place Now ($5,000 with AFS)

If you have not done so before, make sure to put your safe harbor de minimis expensing election in place now. The new de minimis rules make your tax record keeping easier. With this safe harbor expensing, unlike Section 179 expensing, you don’t need to track the assets and keep them in a depreciation schedule.

2016 Last-Minute Vehicle Purchases to Save on Taxes

Here’s an easy question: Do you need more 2016 tax deductions? If yes, continue on. Next easy question: Do you need a replacement business vehicle? If yes, you can solve or mitigate the first problem of needing more deductions and solve the second problem of needing a replacement vehicle at the same time, but you need to read this article now so you know what you have to do and when you have to do it.

2016 Last-Minute Year-End General Business Deductions

This article takes your daily activity and identifies five easy year-end tax-planning strategies. Here are two examples from the article: prepaying your expenses under the IRS safe harbor and simply not billing customers and patients until 2016. These two strategies are certainly easy, as are the other three strategies in this article.

2016 Last-Minute Business Motor Home Purchase

A business motor home could provide both big tax deductions and an ideal solution to your business lodging and transportation needs. You would know how clean your sleeping room is. You would know the room’s smoking history. You would know how many pets, if any, have graced the premises.

Two Special Tax Breaks for Retailers Who Improve Their Property

If you’re in retail, you know how useful a renovated, polished store can be in gaining the trust of your customers. Fortunately, restorations and upgrades to your property became far more financially achievable following a law Congress passed last December. Under the new rules, when you make qualifying improvements to your store, you can immediately or quickly write off much of the expense—even if the improvements cost hundreds of thousands of dollars.

Q&A: Biggest 2016 Vehicle Deductions

 

Beware When Gifting Business Property

You need to know, and avoid, tax-problem surprises when you gift business property to your parents, children, or others. With the wrong method, you can toss tax-deduction benefits into the trash. You can easily suffer recapture. Don’t let your gift of business property surprise you and take money out of your bank account.

Accelerated Tax Deductions for Qualified Leasehold Improvements

If you own tax code-defined nonresidential property (otherwise known as commercial property), you have to like The Protecting Americans from Tax Hikes (PATH) Act enacted last December. The PATH Act put three huge nonresidential property-qualifying leasehold improvement tax breaks in place through 2019.

Will Tax Law Destroy Your Business Vehicle Donation to Charity?

There are many reasons why you may want to donate your business vehicle to charity, not the least of which is that you’re helping a worthy cause. But if your goal is to couple that good deed with a nice tax deduction, make sure you do the math before you hand over the keys to avoid suffering an unpleasant tax surprise.

Tips for Best Tax Result on Vehicle Disposition

The sale or trade-in of a business vehicle has positive or negative tax ramifications. You have a choice in this matter. But first you need to know the dollar amount of your gain or loss. This article gives you the six steps to finding your gain or loss.

Q&A: Two More Reasons to NOT Rent Equipment to Your Corporation

 

Rent Equipment to Your Corporation; Qualify for Section 179 Expensing

Renting equipment to your corporation requires knowledge of the tax laws. If you as a non-corporate lessor want Section 179 expensing, you need to comply with three special rules. If you can’t comply, you may obtain the benefits of Section 179 in other ways as we explain or simply stay with the rental without using Section 179.

How to Deduct Your Business Motor Home

Your business motor home is either a lodging facility, like a hotel, or a transportation vehicle. As a vehicle, it can qualify for Section 179 expensing, but you likely want to avoid that and take the easy road with MACRS depreciation.

Tax Tips for Avoiding Section 179 Recapture

Your claim to Section 179 expensing comes with strings. You make a deal with the government to keep your business use above 50 percent during the depreciation periods for the assets that you expensed. Should you violate your agreement, and depending on when you did that, the government can show up and recapture a big chunk of your Section 179 expensing.

Four Tax Strategies That Make Buildings Produce More Cash

The tax implications for your office building and rentals have changed. Now when you fix up and improve those buildings, you need to be alert to additional savings that were not available in some prior years. Further, if you are buying a new building, you absolutely need to examine how you can create deductions where none existed before.

Q&A: IRS Mileage Rate Kills Amending for Section 179 Deductions

 

Fix Your Missed Bonus Depreciation Deductions, or Suffer

Are you suffering from phantom depreciation? This is when the tax law is depreciating your vehicles and other assets without giving you any deductions. Pretty outrageous, right? You suffer this when you fail to elect out of bonus depreciation. In this article, we show you how to fix bonus depreciation problems and also recoup a missed Section 179 deduction.

2015 Last-Minute Year-End General Business Deductions

This article takes your daily activity and identifies five easy year-end tax-planning strategies. Here are two examples from the article: prepaying your expenses under the IRS safe harbor and simply not billing customers and patients until 2016. These two strategies are certainly easy, as are the other three strategies in this article.

2015 Last-Minute Business Motor Home Purchase

A business motor home could provide both big tax deductions and an ideal solution to your business lodging and transportation needs. You would know how clean your sleeping room is. You would know the room’s smoking and no-smoking history. You would know how many pets, if any, have graced the premises.

2015 Last-Minute Vehicle Purchases to Save on Taxes

Here’s an easy question: Do you need more 2015 tax deductions? If yes, continue on. Next easy question: Do you need a replacement business vehicle? If yes, you can solve or mitigate the first problem and solve the second problem at the same time, but you need to read this article now so you know what you have to do, when to do it, and what you might want to wait for before doing it.

Make the Closing Statement Work for You When Buying Rental Property

One of your first tax steps in buying a rental property is to go through each line item in the closing statement and assign it to one of the following three categories: (1) basis, (2) loan acquisition, or (3) operations. With basis, you allocate costs to land, land improvements, buildings (including perhaps building components), and equipment. Loan acquisition falls into either costs of getting the loan or costs to reduce the interest rate. The assignments have a direct impact on how quickly you realize the deductions.

Don’t Make These Mistakes When You Convert Business Property to Personal Use

You need to know the tax rules before you convert business property to personal use. You don’t want the recapture surprise. You don’t want the tear-jerking missed tax deduction. With a little tax knowledge, you can avoid both the surprise and the tears.

Want a Big Deduction for Your New Vehicle? Here’s Good News

Lawmakers have yet to decide if they will retroactively enact bonus depreciation and the higher Section 179 expensing limits for 2015 purchases. But if you’re looking to buy a large SUV or truck for your business, you may be surprised to learn how fast you can write off the full cost of the vehicle even if lawmakers fail to extend the tax breaks. Knowing the write-offs may entice you to pull the trigger on that purchase immediately instead of waiting for changes in the law.

Unlock the Deductions Trapped in Your Personal Assets When You Convert Them to Business Use

Tax law gives you several nice tax-saving strategies for your business assets but not many for your personal assets. So what happens when you convert a personal asset to a business asset? Does the personal taint last forever? No! This conversion opens the door to a world of new deductions.

Don’t Put Your S Corporation Vehicle Title in the Wrong Name! It Could Cost You Thousands in Tax Deductions

Why You Should Accept the New IRS Offer to Immediately Deduct Assets That Cost $500 or Less

The IRS recently created a rule to make your life simpler and better. How is that for a change? It’s true. Now when you buy almost any tangible asset for $500 or less, you can immediately deduct the purchase if you follow the two easy steps laid out by the IRS. That means tax savings for you and fewer headaches for you and your tax preparer.

Don’t Overlook the New Law That Allows Section 179 and Bonus Depreciation Retroactively to 2014

Lawmakers did it again. They retroactively reinstated a number of so-called extender laws, including those tax-favored Section 179 expensing and bonus depreciation deductions. Did you buy vehicles and equipment last year? If so, this new law can make you smile, as this article shows it did for Harry Spencer.

7 Tax-Reducing Cars, Trucks, Vans, and SUVs to Buy Before Year-End

It’s November. It’s also the beginning of year-end tax planning time. And for many business owners, it’s car, truck, van, and SUV buying time. The combination of car, truck, van, and SUV buying time and year-end tax planning can help you make a sizable dent in your 2014 tax burden. And if lawmakers get their act together, they could further increase your tax benefits before December 31.

Should You Gamble on a Big Motor Home Deduction This Year?

You can use a motor home for your business. If you are thinking of buying a motor home at this time, your Section 179 expensing election is somewhat in limbo. It’s possible that lawmakers will reinstate last year’s limits on Section 179 expensing. This article examines the gamble you take if you buy before lawmakers take action or if they fail to reinstate last year’s limits.

Create Year-End Tax Deductions with Simple Business Expenses

If you have been waiting until now to start looking for some new and easy tax deductions to lower your 2013 taxes, this article has ideas you can use. For example, (1) using the IRS safe-harbor prepayment strategy or (2) simply using your credit cards to pay some bills gives you great last-minute deductions. In this article, you’ll find five last-minute tips for creating 2013 tax deductions.

Test Your Tax IQ: Realizing Tax Benefits of a Loss Deduction

Let’s say that you calculate a tax loss on the sale of your business vehicle. Tax law gives you tax benefits from a valid tax-loss deduction. But you need to make the right move to realize those tax benefits. And when it’s time to dispose of your old business vehicle, you have a number of choices, only one of which will produce immediate tax benefits for you.

Impact of Death, Retirement, and Disability on the 179 Deduction

Have you purchased vehicles for use in your business? Did you take a 179 deduction for them? What happens to your deduction if you retire or become disabled before the end of the vehicle’s useful life? What if you die? This article gives you what you need to know.

Rats! Related Parties Destroy Qualified Leasehold Improvements

As the landlord or the lessee, you get big tax breaks when you can take advantage of a qualified leasehold improvement. We gave you those details last month. But if the landlord and the lessee are tax law-defined related parties, you can kiss those tax-favored benefits good-bye. In this article, you learn who those related parties are so you can avoid the kiss good-bye.

Test Your Tax IQ: Can You Depreciate Antiques Used in Business?

Antique desks, clocks, cabinets, bookcases, rugs, conference tables, paperweights, and even cars can add character and beauty to an office. Antiques also make a great investment because they appreciate in value. And here’s one more neat thing about antiques: you can expense them under Section 179 of the tax code if you (1) actually use them to conduct business; and (2) such use causes wear and tear to the antique.

Huge Tax Deductions for Landlords and Tenants, Last Call

Do you own an office building or commercial retail building that you lease? Are you a tenant in an office building or retail space? Are you considering some leasehold improvements to the space? If so, you need to get your act together lickety-split, as time is running out on IRS-approved huge tax deductions for “qualified leasehold improvement property.”

Maximum First-Year Tax Deduction on a Business Vehicle

How much of a vehicle deduction do you want from your business-vehicle purchase? A lot? A little? Could lawmakers trip you up in your desires? Absolutely. There are big differences in what you can deduct, depending on whether you buy a pickup truck, SUV, or car. Further, the differences among the categories depend on the weight of the vehicles. You need to know what the differences are if you are going to get the vehicle deduction you want.

Trap to Avoid: Leasing When You Thought You Were Buying—or Vice Versa

Once you decide whether to buy or lease your business vehicle, you need to ensure that the actual transaction you enter into is the one you intended. It’s not simply a matter of what you call it. The actual terms of the agreement must make it a “true lease” or a purchase. If the IRS finds that the lease is not a lease or that a purchase is not a purchase, the IRS re-characterizes the transaction, charges you additional taxes, and then hits you with hefty penalties.

Buy or Lease a Business Vehicle: Which Costs Less?

Although personal considerations come into play, the choice between buying and leasing a vehicle for your business ultimately boils down to cost. So it’s essential to understand how to compute and compare the costs and to have the right tools to make those computations easy. This article gives you what you need.

Pay More Taxes Now

The fiscal cliff is coming on December 31 unless lawmakers do something. What does that mean to you? Does it mean you should pay more taxes this year? Perhaps. For insights into what you need to consider, read this article.

Avoid the Section 179 Gotcha When Renting Equipment to Your Corporation

If possible, you want to take money from your corporation in some form other than salaries and wages, on which you pay payroll taxes. One such tactic, the lease of Section 179 personal property to your corporation, can accomplish this, but it rubs against one big gotcha and two steep hurdles. This article shows you how to avoid the gotcha, avoid the hurdles, and get the result you want.

9 Year-End Business Vehicle Tax Tips

If you want to do something with your business vehicles this year, you don’t have much time left. This article gives you the year-end strategies you need to ensure maximum tax benefits should you decide to replace or add a business vehicle.

You Can Switch from the IRS Mileage Rate to the Actual-Expense Method

Are you currently using IRS mileage rates to deduct your business vehicle? Is that the right choice for you? If not, you will be happy to know that you can switch to the actual expense method. The IRS gives you two different ways to do the switch, depending on when you want to make the switch.

Does Section 179 Allow a Tax Deduction for a Paperweight Made of Gold?

Changes in the tax law cause tax-law casualties. If you are the casualty, that’s bad. But if the IRS is the casualty and you are the beneficiary, that’s good. That’s what happened with antiques, and it could happen with a paperweight made of gold.

Section 179 Deduction Lost When Truck Purchase Was a Lease

Is your lease a lease? Are you sure? There are lots of funny rules that make what looks like a lease, a purchase—and what looks like a conditional sales agreement, a lease. This article shows you what happened to Arthur Boyce and gives you a number of tips to help you avoid his plight.

Last-Minute Tax Planning for Business Vehicles

Okay, it’s December and you have some last-minute tax planning to take care of. This article helps you identify big last-minute tax deductions for bonus depreciation and Section 179 expensing on business cars, trucks, vans, and motor homes, including those you already own and may or may not use for business.

Last-Minute Year-End Tax Planning for Your Business Tax Deductions

Are you looking for more tax deductions this year? It’s not too late. Learn 12 last-minute tax-planning ideas that you can implement to create or push more deductions into this year so you can pay less in taxes this year.

IRS Agrees That You Should Ignore Truck Chassis for Section 179 Expensing Deductions

The chassis of an SUV, truck, or van does not define its status for tax purposes. In other words, the truck chassis does not make that SUV a truck. Similarly, the car chassis does not make that SUV a car. If you want to use Section 179 expensing on your SUV, you need to know what makes the SUV a truck or a car.

Tax Guide to Best 2011 Business Vehicle Tax Deductions

Tax law requires your attention to enable tax deductions on your business vehicles. Your tax write-off results differ with certain aspects: vehicle type (car, van, pickup truck, crossover vehicle), new or used, use of Section 179 expensing, and bonus depreciation. This article guides you through the deductions so you can select what gives you the best write-offs.

New: Big Bonus Depreciation Break Applies to Trade-Ins

The new 100 percent bonus depreciation enables new tax planning strategies, as it applies to both the carryover and boot basis on a trade-in or other Section 1031 exchange.

Tax Tip: With the New Tax Law, What’s Best—IRS Mileage Rates or Actual Expenses?

The new tax law contains some real surprises when it comes to deducting vehicles. In some cases, you can deduct the full cost in the year you place the vehicle in service. In other cases, the luxury auto limits might stretch your depreciation deductions over 30 or more years.

1040X, 1120X Amended Tax Return for Section 179 Expensing

It used to be that when you claimed a Section 179 expensing deduction, you locked that deduction in stone for the year you claimed it. Because of the economic downturn caused by 9/11, lawmakers wanted to stimulate the economy. Accordingly they increased Section 179 expensing and, fearing that some business people would miss this opportunity, they inserted a window of opportunity during which you may amend your tax return for Section 179 expensing.

IRS Mileage Rate Kills Section 179 1040X

You can amend your Section 179 deduction. However, when you chose IRS mileage rates, tax law grants you no Section 179 deduction and no ability to amend your tax return to claim it. You can recover many of those missed deductions by switching to the actual expense method as described in this article.

Tax Tips for Landlord’s Snowblower Deduction

The properties owned and the activities of the landlord determine whether the landlord can Section 179 expense a snowblower in whole or in part.

Nine 2010 Last-Minute Tax Tips for Vehicles

This issue contains 21 last-minute tax tips that you can use for 2010. We’ve broken the tips into two articles: one for vehicles and one not related to vehicles. This article contains the tips that apply to vehicles.

Tips for Best Tax Result on Vehicle Disposition

The sale or trade-in of a business vehicle has positive or negative tax ramifications. You have a choice in this matter. But first you need to know your gain or loss. This article gives you the six steps to finding your gain or loss.

Tax Tips for Section 179 Expensing of a Motor Home

This subscriber is going to buy a motor home and use it during the first year for travel to and from conventions. In the second year, he is going to convert that motor home to a transient rental property. His plan meets the qualifications for Section 179 expensing and avoids recapture.

Tax Tips That Unearth Section 179 Deductions in Lodging Properties

Your lodging property may qualify for one or more of four exceptions that allow Section 179 expensing. The four exceptions override the basic rule that you may not claim Section 179 expensing on property used primarily for lodging or in connection with the furnishing of lodging

Tax-Saving Tips for Married Taxpayers Claiming Section 179 Deductions

If you are married, you need to consider your spouse’s W-2 and other income sources in your Section 179 expensing eligibility. The inclusion of your spouse often enhances the amount you can deduct using Section 179 expensing.

What Can I Deduct for Section 179 Expensing?

One question that is often answered incorrectly, thus reducing tax benefits is the question: What is considered business income for the Section 179 expensing limit? Actually, the real problem is the assumption (and you know what they say about assuming) that I know what business income is. That assumption often limits Section 179 expensing to far less than what is allowed.

Don’t Let the New 2010 Luxury Vehicle Depreciation Limits Hurt Your Deductions

Luxury limits on passenger automobiles and light trucks and vans produce planning benefits at the back end. If you want to beat the luxury limits, you have to buy a vehicle that’s exempt from the luxury limits.

Transient Rule Applied to Business Motor Home

This article shows you how to apply the transient rule to use of a motor home for business purposes. By passing the transient test, your motor home can qualify for Section 179 expensing to the extent of business use.

No Mileage Log on Business Truck Destroys $53,625 Section 179 Deduction

You need a mileage log on your business vehicle. With no mileage log, you can try the alternate-proof method, but the odds are better than 9 to 1 that you will lose. This article gives you a perfect mileage-log system free.

Apply Section 179 Expense against W-2 Income

Section 179 expensing is available against business income. For this purpose, business income is defined to include, among others, W-2 income.

How the 2009 Stimulus Package Can Stimulate Your Business Deductions

The official name of the new stimulus is the American Recovery and Reinvestment Act of 2009 (Public Law 111-5). Like last year’s version, the 2009 stimulus contains three big deals for business: (1) fifty percent bonus depreciation; (2) Section 179 expensing of up to $250,000; and (3) an increase in first-year luxury car depreciation on new (not used) cars.

Make Your 2009 Stimulus Tax Savings Permanent with a Section 1031 Exchange

The tax-favored like-kind rules for personal property such as cars contain a number of twists. For example, trading a car for an SUV, a crossover vehicle, or another car qualifies as a like-kind trade. But the trade of a car for a pickup truck is not like-kind.

The One Time to Avoid the 1031 Exchange

The very first thing you need to do once you make the decision to buy the new asset and replace the old asset is to calculate your taxable gain or deductible loss on the old asset (as if you were going to sell it right now). The result—gain or loss—determines the strategy you should follow.

Section 179: Avoid These Three Things

When you claim a Section 179 expensing deduction, you make a deal with the government. You agree to give back your early tax benefits if, during the recapture period, your business use drops to 50 percent or less.

Applying the Luxury Vehicle Limits

Your maximum write off on a new $14,000 car purchased in 2008 is $10,960. To get to this number, you need to use Section 179 expensing. Should you have personal use of the car, then you reduce your $10,960 limit by your personal use.

20 Last-Minute Tax-Planning Tips for 2008

As the end of the year arrives, you still have time to pocket some tax money. The 20 strategies in this article have a wide range, from getting married to selling your old vehicle. Spend a few minutes and pick up some last minute tips.

Section 179 on a Pickup Truck

The section 179 deduction can allow a write-off of up to $250,000 on a Toyota Tundra truck. The big write offs are easy to lose if the truck is not kept and used correctly and for the appropriate amount of time.

Your Business Stimulus Expires Soon

Take advantage of the government stimulus package in 2008. You need to buy and place in service a business vehicle, business equipment, or a business-related building before the end of the year. Generate fifty percent bonus depreciation, up to $250,000 Section 179 expensing, or an $8,000 increase in first-year luxury car depreciation.

No Expensing Allowed on Purchase of Leased SUV

Buying the vehicle you lease destroys any opportunity to claim Section 179 expensing.

Deductible Business Expenses: Wins Computer, Loses Mileage Write-Off

In court, David Choe succeeded proving that his laptop was business use, but a bad mileage log took away all his automobile deductions. Ouch! Learn how to avoid this egregious error.

Court Recaptures Section 179 Deductions

Learn from Michael Birdsill’s mistakes: keep good records of your business vehicle use, and report it on your taxes. Birdsill’s court case proves that you must do this to receive deductions for mileage. Follow our four rules for claiming Section 179 expensing to make sure you do it right.

SUV Recapture

You can avoid recapture with a Section 1031 deferred exchange or a delayed exchange. You can also make your Section 1031 deferred exchange strategy forever, making your deductions permanent.

1031 Exchange to Avoid Recapture

If you sell an asset, you should know the details about depreciation and Section 179 expensing. You can sell or trade, and choose if you want an intermediary. The result: you could save a lot of money.

How the New Law Stimulates Your Business

This could be the perfect year to buy that rental property or building for your office. The new 50 percent bonus depreciation, new $250,000 expensing limit, and new higher luxury limit make 2008 the year to seriously consider making business purchases.

How a Buy-and-Sell Strategy Combined with Section 179 Expensing Can Put Self-Employment Tax Dollars in Your Pocket

You can take advantage of Section 179 expensing to put money in your pocket! By working the tax law, you can arrange your business assets to decrease your self-employment tax and save money.

How Trade-ins Avoid Taxes

The trade-in of an old business asset on the acquisition of a like-kind replacement business asset is a tax-deferred exchange, exempt from depreciation and Section 179 recapture. Use this to your advantage and save money every year until you die.

Don’t Do the Worst Thing You Can Do to Your New Vehicle Deductions

Don’t blow your deduction – use your vehicle more than 50% for business. If you don’t, you must recapture Section 179 deductions and recapture MACRS deductions. Aim gun, shoot foot.

Gift of Business SUV

When a business vehicle is given away as a personal gift, it is subject to recapture on any expensing or depreciation deductions in excess of straight-line depreciation.

 

Quitting Business

When you claim Section 179 expensing or MACRS depreciation, you make a contract with the government. When you quit your business, you probably violate the terms of your tax-law contract and, thereby, trigger recaptures taxes.

 

Antiques Can Make Smart Assets for Your Business

Furnishing your office with antiques can actually make you money. Instead of buying new, depreciable furniture, furnish your office with antiques. Though they have a higher price tag, they can yield 36 times more money than new furniture.

$25,000 Expensing of SUV

If your SUV qualifies as a truck, you can write off up to $25,000. What qualifies as a truck, however, is very specific. It must pass the weight test, be a legal gas-guzzler. The bed size is important, too.

Make Sure the New 2007 Business Vehicle Luxury Limits Don’t Stick It to You

The government penalizes you if you drive a luxury vehicle. Further, the government’s idea of luxury and the reality do not match.

Guide to Aircraft Deductions for the One-Owner Business

Many people, through keen knowledge of the tax law, have been able to use the law to their advantage and buy personal aircraft. Unfortunately, lawmakers changed the rules for deducting personal aircraft. We summarized the new rules for you.

Reimburse S Corporation Owner for Section 179 Deduction

If you personally own the vehicle that your corporation uses, the IRS authorizes the reimbursement of the vehicle expenses. To make this work, you must submit an expense report and mileage log to your corporation.

Subaru Outback As a Truck

There are very specific regulations regarding what qualifies as an SUV for the $25,000 expensing. Does a Subaru Outback qualify?

Unibody SUV

You may amend your tax return for missed Section 179 expensing on a unibody SUV. The truck chassis is not required for an SUV to qualify as a truck for purposes of the SUV deduction.

Does the SUV Built on a Unibody Frame Qualify for $25,000 Expensing?

You may Section 179 expense up to $25,000 of your business cost when you buy a more than 6,000 pound gross vehicle weight rated (GVWR) new or used crossover vehicle or SUV built not on a truck chassis, but on a unibody frame in a manner that qualifies the vehicle as a truck for purposes of the gas guzzler tax.

The Back-End Vehicle Deduction Tax Reduction Plan

You need a tax plan for the sale or trade-in of the business vehicle you are driving today. You also need a tax plan for the business vehicle that will replace your current business vehicle. You need this tax plan if you use IRS mileage rates, actual expenses, Section 179 expensing, MACRS depreciation, or bonus depreciation.

1031 Exchange of SUV for Hybrid Car

The SUV is like-kind property to the hybrid car. Thus, you can trade or use an intermediary to complete a Section 1031 tax-deferred exchange of an SUV for a hybrid car.

Upside Down Trade of SUV

You apply the new trade-in adjustment rule to find your new depreciable basis. When you have the combination of an expensed asset and an upside down loan balance, you can generally ignore your personal use and follow the cash outlay to your new basis.

Business Airplane

Tax law classifies the business airplane in the listed property category. This means the law requires a log of business and personal use. You deduct your business percentage. To obtain and then retain maximum benefits, you need your business use at greater than 50 percent. Further, the airplane is personal property and that makes it eligible for Section 179 expensing.

Best Strategy for SUV Saves Self-Employment Taxes

Say you are going to buy a replacement SUV that qualifies for Section 179 expensing. Should you trade your old vehicle or sell it outright? The selling outright strategy can save self-employment taxes. Many Schedule C taxpayers pocket thousands with this little-known strategy.

Personal Car Used for Corporate Business

When you operate your business as a corporation, you need to reimburse the business use of the personal car as a reimbursed employee expense. The corporation may use either the IRS mileage method or the actual expense method for the corporate reimbursement to the employee-owner.

New 2006 Standard Mileage Rates

You probably should hate the IRS for the mileage rate. First, the mileage rate creates the illusion that you don’t need a mileage log (wrong!). Second, individuals who start in business think that the mileage rate makes their tax life easy and that it doesn’t make much difference financially (generally, wrong). Third, mileage-rate addicts think that the mileage rate takes care of everything—then they cost themselves money by failing to deduct a loss on the sale of a business vehicle and overlook the business person’s tax deduction for interest on a car loan.