Posted by: DeAnna Alger, CPA
As the tax year comes to an end, business owners are looking for additional ways to decrease their tax liability. Fortunately for those companies that use trucks and vans, there are still generous depreciation rules that are available for newly purchased “heavy” vehicles. In order to maximize depreciation write offs, these vehicles much be purchased and placed in service by the end of 2014.
Although purchasing a new passenger auto for business will help to decrease tax liabilities, the savings will not be as significant as purchasing a heavy truck or van. This is because depreciation limitations applicable to passenger autos are relatively small compared to what is available for the heavy trucks and vans. It is important to keep in mind that when passenger autos are used personally as well as for business, depreciation deductions will be limited.
Find out more about what tax savings are available for "heavy" trucks and vans here.
If you have questions on this, or any other tax or business related issue, please contact the experts at Zinner & Co.
