Looking for a big tax deduction for your business?
If you purchase a new heavy SUV (loaded gross vehicle weight over 6,000 pounds) in 2013, you can get a large depreciation deduction. As an example, say that your company buys an qualified SUV (must be new) for $50,000, First, the company can expense the $25,000 cap for SUVs. Half of the remaining cost of $25,000 may be taken as bonus depreciation. In addition, 20% of the $12,500 balance $2,500 is normal depreciation. Assuming this vehicle is 100% business use, the total first year write off is $40,000. Lighter vehicles have a maximum deduction of $11,160 in the first year. Pickup trucks with loaded weights over 6,000 pounds can be fully expensed as long as the cargo bed is at least 6 feet long and not accessible from the cab.
As always it is important to check with your tax professional to make sure this would work for you. If you don’t have a tax professional, give us a call. Schneider & Stone PLC helps individuals and small businesses with tax preparation in Chandler and the surrounding area.
Dawn Schneider has been a Certified Public Accountant (CPA) for over 20 years. She enjoys providing top notch service to individuals and small to mid-sized business for all of their accounting and tax needs.