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Commercial Financing Incentives

10 Dec News | Comments Off on Commercial Financing Incentives

section179 tax graphic

 

Call Landmark Dodge Chrysler Jeep Ram for more information about Commercial Financing for your business vehicles and tax savings.


• Competitive Rates and Terms
• Seasonal Payment Options
• Trac Lease Financing
• Establish a commercial Line of Credit
• Upfit Financing for Ram 3500/4500 & 5500

4 Reasons to buy a New Work Vehicle

1. Section 179 Deduction allows business owners to deduct the full purchase price of certain work vehicles up to $500,000, in the same year they were purchased.
2. Section 179 Deduction limit is expected to decrease to $25,000 in 2014.
3. Currently available for qualified new vehicles is a one-time bonus depreciation of 50% that will end after 2013.
4. There are up to $1,500 in special offers with On-The-Job incentives
Frequently Asked Questions

Q. Section 179, what is it and what can be deducted?

A. IRS Tax Code Section 179 is an incentive for business owners to invest in their businesses and the economy by purchasing equipment. It allows taxpayers to elect to deduct the full purchase cost of certain types of property (up to $500,000) from their federal taxes for the year the property was purchased.

Q. What qualifies for Section 179?

A. Most business equipment qualifies for the Section 179 deduction. This includes vehicles, and also machinery, computers, software, and office furniture. To qualify more than 50% of the property’s use must be in the service of a trade or business.

Q. How much can I deduct?

A. The amount you can deduct is generally equal to the purchase price of qualifying property up to $500,000. There are some limitations, including a $25,000 limit on the amount a small business owner can elect to deduct for the purchase of certain sports utility vehicles. There is also a limitation for businesses that purchase more than $2,000,000 in qualified equipment. The IRS website has a more detailed explanation of deduction limits.

Q. Will I still be able to use the $500,000 if I purchase a vehicle next year?

A. The increased Section 179 Tax Deduction limit of $500,000 is expected to last until the end of 2013. Excepting new legislation, the limit will decrease to $25,000 in 2014.

Q. What is bonus depreciation?

A. Bonus Depreciation is a one-time special depreciation allowance. This Bonus Depreciation will end after 2013. The bonus depreciation allows businesses to claim depreciation allowance equal to 50% of the depreciable basis of certain qualified property. To qualify for bonus depreciation, the property must be new, rather than used.

 

**DETAIL:
A – Expense 50% of vehicle cost with bonus depreciation OR $3,160 if vehicle does not qualify for bonus depreciation (for example, because it is used) or an election out of bonus depreciation is made.
B – Expense 50% of vehicle cost with bonus depreciation OR up to $25,000 if vehicle does not qualify for bonus depreciation (for example, because it is used) or an election out of bonus depreciation is made.
C – Expense 50% of vehicle cost with bonus depreciation OR up to $139,000 if vehicle does not qualify for bonus depreciation (for example, because it is used) or an election out of bonus depreciation is made.
* The stated MSRP and GVWR relate to base models.
** Includes upfit as long as total cost of chassis and upfit do not exceed $139,000.
The material presented in this document is for informational purposes only and is not offered as legal or tax advice. You are urged to seek the advice of your tax advisor, attorney, and/or financial planner for specific tax or legal questions.
(1) Visit http://www.irs.gov/publications/p946/cho2.htm for a full explanation of the Section 179 Deduction.
(2) Visit http://www.irs.gov/publications/p946/ch03.html for a full explanation of the bonus depreciation.
*The information provided here is intended as a general overview of the Section 179 Deduction and Bonus Depreciation. You should always consult with a tax professional on business tax deductions.

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