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Great Time to Buy a Car... if you’ll use it for business

The new tax law has implemented a fantastic depreciation break for vehicles used for business. For both new and used passenger vehicles that are acquired and placed in service after 12/31/17 and used over 50% for business, the appreciation has been increased to:

* Including first year bonus depreciation

If you don’t use the vehicle 100% for business, these allowances are reduced proportionately.

The new law also allows unlimited 100% first-year bonus depreciation for qualifying new and used heavy SUVs, pickups, and vans that are acquired and placed in service between 9/28/17 and 12/31/22 because, for tax purposes, they are taxed as transportation equipment rather than passenger vehicles. These must have a manufacturer’s gross vehicle weight rating (GVWR) above 6,000 pounds. (You can verify a vehicle’s GVWR by looking at the manufacturer’s label, which is usually found on the inside edge of the driver’s side door where the door hinges meet the frame.)

If you are thinking about entering a new or used vehicle into new service for your business, give us a call and we’ll prepare the depreciation schedule and get you that first year bonus.

And talking about cars…

If you happen to drive your own car for work, you can no longer claim the itemized deduction for your total unreimbursed business-use car expenses. The write-off was eliminated with the new tax law.

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