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Take advantage of these TAX DEDUCATIONS for your small business when you purchase an eligible New Chrysler, Dodge, Jeep or Ram vehicle by December 31st, 2020.
TALK TO YOUR TAX PROFESSIONAL NOW!
See what tax deductions may apply to your business to allow you to get the maximum tax benefits in 2020 for the purchase of an eligible new vehicle for you business.
Tax Benefit Examples For Qualifying Businesses
Important Facts: The qualifying Chrysler, Dodge, Jeep or Ram vehicle must be placed in service from January 1 to December 31, 2020. The vehicle must be used at least 50% for business based on mileage. If the vehicle is used for both personal and business, only the percentage allocated for business would be eligible for the deduction allowance.
HURRY!
You must act by December 31st, 2020 to get your deduction for the 2020 tax year!
Q: WHAT IS IRS SECTION 168(k)?
A: Section 168(K) is the current IRS tax code that allows you to buy qualifying Chrysler, Dodge, Jeep or Ram vehicles and deduct up to the full purchase price (including any amount financed) from your gross taxable income if purchased before December 31st, 2020. That means that if you buy a piece of qualifying equipment and products, you may be able to to write off up to the FULL PURCHASE PRICE from your gross taxable income this year.
Q: DOES THE DATE OF MY PURCHASE HAVE AN IMPACT ON THE SECTION 168(k) DEDUCATION?
A: Yes. To qualify for the Section 168(k) tax deduction for the 2020 tax year, your Chrysler, Dodge, Jeep or Ram vehicle must be purchased or leased and placed into service by December 31st, 2020.
Q: WHICH VEHICLES QUALIFY FOR THE MAXIMUM IRS TAX SAVINGS?
A: Trucks with a GVWR greater than 6,000 lbs. and a bed length of at least six feet qualify for the maximum first-year depreciation deduction of up to the FULL PURCHASE PRICE. SUVs, including trucks, with a GVWR greater than 6,000 lbs. qualify for a maximum first-year depreciation deduction of the full purchase price as well.
Q: WHAT ABOUT SMALLER TRUCKS/VANS/SUVS?
A: Vehicles of less than 6,000 lbs. GVWR may still qualify under current bonus depreciation for up to $18,100 per vehicle in the first year. Passenger automobiles under 6,000 lbs. GVWR also may qualify for up to $18,1000 in depreciation.
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PLEASE NOTE: This information is provided as a public service to you. It should not be construed in any way as tax
advice or a promise of potential tax savings or reduce tax liability. Individual tax situations may vary. Federal rules and tax guidelines are subject to change. For more information about the Section 168(k) tax code and
tax deductions, please contact your tax professional for complete rules applicable to your transactions and visit the Internal Revenue Service website at www.irs.gov.
*This analysis applies only to vehicles
placed in service in the United States after December 31st, 2019, and by December 31st, 2020. Under Bonus Deprecation in Section 168(k) of the Internal Revenue Code, companies may be eligible to fully expense the cost of
trucks, vans and SUVs rated over 6,000 lbs. GVWR, when purchased for business use. Trucks and vans that are considered passenger vehicles, rated under 6,000 lbs. GVWR, are limited to $18,100 of depreciation in the year
of purchase with normal MACRS depreciation on the remaining basis in the vehicle in subsequent years. A vehicle is not considered a passenger vehicle, and is thus not limited to the lower depreciation amounts, if it is
considered a "qualified non-personal use vehicle." Qualified non-personal use vehicles are vehicles that, by virtue of their nature or design, are not likely to be used more than a de minimis amount for personal
purposes. Examples of qualified non-personal use vehicles include 1) a vehicle that can seat nine-plus passengers behind the driver's seat 2) a heavy non-SUV vehicle with a cargo area of at least six feet in interior
length or 3) a vehicle with a fully enclosed driver's compartment/cargo area, no seating behind the driver's seat, and no body section protruding more than 30 inches ahead of the leading edge of the windshield. For more
information, see IRC Section 280F(d)(7), Income Tax Regulation, Sec 1.280F-6(c)(3) and Revenue Ruling 86-97 and consult your tax advisor for details. Consult your tax advisor as to the proper tax treatment of all
business-vehicle purchases.
**The Tax Cuts and Jobs Act set the amount of depreciation and expensing deduction for passenger automobiles, trucks and vans at $18,000 in the first year placed in service, indexed
for inflation. For vehicles placed in service during 2020, the first year depreciation amount is $18,100.
Vehicles are for representation purposes only. Vehicles shown may have optional equipment not included in
payment. See dealer for complete details.