Area business people, take notice! There’s a huge tax incentive available to you right now that will only last through the remainder of 2013. It’s under Section 179 and it allows for a tax deduction of up to $500,000 for qualified business owners. Sound good? We’ll tell you all about it right here!
The background: Ever hear of “The Hummer Loophole” that allowed business owners to buy expensive passenger vehicles and then write them off as an expense? Yeah, that didn’t last long! But the government still wanted to incentivize business owners – those smaller ones trying to get a leg up in particular – to upgrade their equipment and put some of today’s great innovations to work for their business.
The solution: For 2013, the incentive has been carefully limited to offer the maximum benefit to businesses with minimal possibility for abuse. The vehicles whose purchase price may be expensed in their entirety (up to $500,000 total per business) are restricted to heavy-duty, “non-SUV” vehicles such as pickups with full-sized cargo beds (min. six feet interior length), passenger vans seating nine or more people behind the driver’s seat, and classic cargo vans.
But can’t we always write off vehicles for business purposes? What’s special about this incentive? Normally, you can write off the cost of a vehicle only in the amount of its annual depreciation. The benefits come your way over time, year by year. With the current incentive you are able to write off the full cost of qualified vehicles in their entirety for the 2013 tax year.
What vehicles at Palmen Buick GMC Cadillac qualify for the full deduction? Those GMC Sierra vehicles with a full-size cargo bed are applicable, as is the GMC Savana cargo van. Also, used vehicles are included in the incentive as well, so feel free to check out our vast selection of large trucks and vans.
If you have any questions about the tax incentives available to you, please don’t hesitate to contact us! Just make sure you hurry – these benefits will end on 12/31/2013!
