If you need a new vehicle for business use, you do not want to overlook the tax benefit. Consult your CPA to ensure you can enjoy the tax benefit.
The good news is if you are buying a new or used pickup truck (with 6 feet or longer and a gross weight over 6,001 pounds), you can write off 100% in the year you purchased by electing section 179. The limit of section 179 in 2016 is $500,000.
For new SUV over 6,001 pounds, you can also deduct up to $25,000 in the first year by section 179. Please note that the SUV must be brand new though.
Otherwise, for other cars, you are likely to deduct it up to $11,160 in the first year.
As a reminder, to substantiate the deduction of your vehicle for business use, you have to keep a mileage log sheet in order to support the percentage of business use. If you want to learn more the tax laws in record keeping requirement as well as the tax benefit in business vehicle, please do not hesitate to contact us for more information.
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