03 Dec Crucial Tax Planning Still Available for 2016-Please Read This
Do you need a significant tax deduction in 2016, as your income has increased substantially this year?
Do you need a replacement business car, SUV, van, or pickup truck?
If so, read on…
The vehicles that provide the largest possible deductions on your last-minute 2016 purchase are as follows:
- New or used pickup trucks, cargo vans, and passenger vans with GVWRs( gross vehicle weight rating) greater than 6,000 pounds that escape the SUV classification ( Section 179 expensing of up to $500,000)
- New SUVs, crossover vehicles, and mini-type vans with GVWRs greater than 6,000 pounds ( Section 179 expensing of up to $25,000 plus 50% bonus depreciation.
- Used SUVs, crossover vehicles, and mini-typr vans with GVWRs greater than 6,000 pounds ( Section 179 expensing up to $250,000)
- New cars and other passenger vehicles- SUVs, crossover vehicles, and vans that fail the 6,001 pound or more GVWR test (bonus depreciation up to $8,000)
To ensure compliance with the “placed in service” rule, drive the vehicle at least one business mile before midnight on December 31, 2016.
This tax planning strategy is used routinely by individuals and corporations to tax shelter income and reduce their related taxes.