Ever wonder how some business owners seem to keep more of their money while driving nicer cars? I’m about to share their secret weapon – and it could put thousands back in your pocket this year.
Many entrepreneurs believe vehicle tax deductions are tiny or impossible to claim. They’ve heard horror stories about audits and think, “Better play it safe and take the standard mileage rate.”
This couldn’t be further from the truth! The government actually WANTS you to invest in certain vehicles and has created massive tax incentives you can legally claim.
The $31,300 Tax Break Most People Miss
Last month, I worked with a coach who was struggling to grow his business. After reviewing his situation, I discovered he could purchase the SUV he needed AND write off over $31,000 in the first year using a powerful Section 179 deduction!
By combining this with a proper home office deduction, he transformed his tax situation completely. Now he has the vehicle his business needs while keeping thousands that would have gone to taxes.
Your Action Plan:
- Check vehicle weight: Your vehicle must have a manufacturer’s gross vehicle weight rating over 6,000 pounds (check the driver’s door jamb sticker)
- Document business usage: Keep a mileage log showing the vehicle is used more than 50% for business
- Establish a qualifying home office: This turns your home-to-client drives into business miles, dramatically increasing your business usage percentage
- Talk to your tax strategist about Section 179: You can deduct up to $31,300 for SUVs or potentially the entire purchase price for qualifying trucks and vans
- Consider timing: Purchase and place the vehicle in service before December 31st to claim deductions this tax year
Not every vehicle qualifies, but here is a small list of models that qualify: the Ford F-150, Jeep Grand Cherokee, Cadillac Escalade, Tahoe/Suburban. Imagine writing off a significant portion of your new vehicle while using it to grow your business!
Don’t let another tax season pass without using these powerful deductions. The rules are there to benefit business owners like you – why leave that money on the table?
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