From a tax perspective, the time may be right to buy a new (not used) vehicle for business driving.
Strategy: Place the vehicle in service before 2009. Reason: It qualifies for the new—but temporary—50% first-year bonus .
Normally, deductions for business vehicles are strictly limited by the “luxury car” rules. But, thanks to bonus depreciation, you can claim a five-figure write-off for purchases this year. Here is a side-by-side comparison of the 2008 limits (based on 100% business use).
Limit without Limit with
Type of vehicle bonus depreciation bonus depreciation
Automobile $2,960 $10,960
Light truck or van $3,160 $11,160
Example: If you buy a new (not used) light truck or van before year-end and use it 90% for business, your 2008 deduction is a healthy $10,044 (90% of $11,160).
Note that the luxury car limits don’t apply to certain heavy-duty vehicles weighing more than 6,000 pounds. Therefore, you can write off the entire business portion of the cost under .
Tip: Congress has threatened several times to close this tax loophole, but it hasn’t happened yet.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/6939/drive-a-tax-break-out-of-the-showroom "