CALL US AT 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.
Advertisement 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. |