Are you a business owner looking for year-end tax benefits that could brighten your books for 2014 and strengthen your business? Palmen Buick GMC Cadillac wants you to know about some important tax incentives that are about to disappear.
Now through the end of 2014, Section 179 allows vehicles purchased by a business for business-related purposes to be eligible for a full tax deduction up to $500,000 on qualified vehicles. This can be a great relief to businesses who want to upgrade their automobiles but have been hesitant about whether it’s a sound financial move. This incentive, put in place in order to stimulate businesses and the American economy in a positive direction, gives a huge leg up to business owners who want a real tax advantage this upcoming season.
You may be familiar with the incentive in its older form, nicknamed “The Hummer Loophole.” With fewer restrictions on which vehicles could qualify, business owners allegedly purchased extravagant passenger vehicles for personal use and then used Section 170 to write them off as a business expense.
In its current form, Section 179 takes more care to ensure that the vehicles being deducted for under the code are for legitimate business purposes. Certain typical passenger vehicles, like cars, trucks and vans that are used more than 50% for the business, are limited to a deduction of $11,060 for cars and $11,160 for trucks and vans. There are exceptions for highly specific business vehicles like taxis, hearses, and ambulance vehicles.
Certain crossover and SUV vehicles weighing between 6,000 and 14,000 lbs qualify for business expensing of up to $25,000.
The biggest benefit lies in the purchase of vehicles, that, according to Section 179, “Are not likely to be used for personal purposes.” These vehicles may be fully deducted for their entire purchase price, up to $500,000 for qualified businesses*. They include vehicles such as pickups such as the 2014 GMC Sierra with a 6-foot or greater cargo area, vehicles that can seat nine or more passengers behind the drivers’ seat, or a classic cargo van like the 2014 GMC Savana 2500.
For additional information, please contact us here at Palmen Motors. Hurry – the benefits disappear after 12/31/2014!