Thinking of buying a new automobile before Year End? You might be able to maximize your deductions by selecting a larger vehicle like a Cadillac Escalade, Chevrolet Tahoe or Jeep Grand Cherokee.
There are depreciation deduction limits on vehicles classified as a “passenger automobile”, (vehicles with a gross unloaded weight of less than 6,000 pounds). Passenger vehicles over 6,000 pounds GUV are not considered to be “passenger automobiles” and are not subject to the limitation. Using bonus depreciation and or Section 179, you may be able to deduct a large percentage of your vehicle’s cost in a single year.
Does the vehicle you’re shopping for qualify as a “passenger automobile”? Are you able to maximize your deductions?
Please contact us to schedule a time for us to discuss this or other ideas to reduce your 2017 income tax liability.
