You can take advantage of some valuable tax deductions you might have overlooked.
That’s right. If you know the IRS rules (and we do!), your currently-owned business cars, SUVs, trucks, and vans, (and even your personal vehicles!), can be the source of significant money-saving deductions!
Want to find out how? We’ll provide you with four, perfectly-legal strategies you can use.
Four Strategies To Consider
Strategy #1: Take your spouse’s or child’s vehicle and sell it. This isn’t as nasty as it sounds. You can promptly buy a replacement vehicle for them before taking away their vehicles. So why would you want to deprive them (temporarily) of their vehicles? Because if you sell them you can create a useful tax-deduction loss.
Strategy #2: If you’re self-employed, use the buy-and-sell strategy. All business vehicles show a gain or loss upon sale. Now, under the new law, the vehicle trade-in is nothing more than a sale of the vehicle to the dealer. The result? Many self-employed taxpayers will come out ahead because their trade-ins automatically take advantage of the buy-and-sell strategy.
Strategy #3: Cash in on past vehicle trade-ins. Have you been trading-in your old business vehicles for replacements? If so, calculate your possible loss-deduction right now. NOTE: Regardless of whether you used IRS mileage rates or the actual expense method for deducting your business vehicles, you could find a nice big deduction waiting for you.
Strategy #4: Put your personal vehicle into business service. Here’s why. Lawmakers reinstated 100% bonus depreciation, which creates an effective strategy – one that costs you nothing but can produce solid deductions. Are you (or your spouse) driving a personal vehicle? Put it into business service now.
Would you like to increase your tax deductions for this year? We are here to help you receive all possible deductions that you are entitled to!
Contact Meese Khan, LLP today for a complimentary consultation!
Phone: 623 935 1005