2016 Last Minute Vehicle Purchases to Save on Taxes

As the end of the year approaches, it’s a good time to think of planning moves that will help lower your tax bill for this year. One strategy that will provide big tax deductions is purchasing a vehicle.
 
If you’re looking for a replacement business car, SUV, van, or pickup truck, then now is the time to act. If you want the deductions, you need to
 

• own the vehicle, and
• place it in business service before midnight on December 31.

 
The “placed in service” requirement means that you must drive the vehicle at least one business mile before midnight on December 31. In other words, you want to both own and drive the vehicle to ensure that it qualifies for the big deductions.
 
I would like to review five categories of vehicles and what you gain with the purchase of each type. I urge you to contact me if you have any questions about the tax-saving benefits associated with each of these vehicles.
 

1.  Used SUV, Crossover Vehicle, or Van
2.  New SUV, Crossover Vehicle, or Van
3. New or Used Pickup
4. New or Used Qualifying Cargo or Passenger Van
5. New Passenger Vehicle​

 
If you’re already in the market for a replacement business car, SUV, van, or pickup truck, then this is a terrific strategy to lower your 2016 taxes. Please feel free to contact me in order to calculate exactly how much you will save with the purchase of your vehicle.