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 FYI: Tax Planning Businss Vehicle Purchases
 Your year-end tax planning may include "Capital Equipment Purchases". Part of your plan may include buying or leasing a vehicle that will be used over 50% for business. If so, you should know that especially favorable tax treatment can apply to certain models.
Any vehicle with a manufacturer's gross vehicle weight rating (GVWR) above 6,000 pounds that (1) has an enclosed body built on a truck chassis or (2) is classified as a minivan or sport utility vehicle (SUV) can potentially qualify. Qualifying vehicles can generally be depreciated much more quickly than a "regular" passenger car or light truck. This includes potential expense write-offs of $20,000 when taxpayer elects Section 179 treatment for qualifying property.
Similarly, if you lease a vehicle with a GVWR above 6,000 pounds and use it more than 50% of the time for business, it will not be subject to IRS rules that reduce tax write-offs for leased "regular" cars and trucks.
Finally, vehicles with GVWRs above 6,000 are not subject to the federal luxury auto tax.
Email infovehicles@ozeck.com for a list of vehicles that qualified for these special tax benefits based on their GVWRs at the time we checked them. It is a surprisingly long list and there may be some we have missed (new and retooled models are coming out all the time). ALWAYS verify the GVWR for yourself before making a buying decision. The GVWR is normally found on a label attached to the inside edge of the driver's side door.
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Charles J. Ozeck, CPA
Serving Clients in Southeastern Pennsylvania and Nationwide
601 W. Callowhill Street, Perkasie, PA 18944
Phone (215) 453-8319
Fax (215) 453-0764
E-mail co@ozeck.com
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