X5 and X6 Tax Benefit for 2014 – Revised! In an interesting development, as of Friday evening, President Obama signed a Tax Bill into law which includes a provision to extend bonus depreciation for all qualifying assets purchased and placed in service by 12/31/14. As a result, purchasers of X5s and X6s that use those vehicles for business purposes and place such vehicles into service in 2014 will obtain an EVEN LARGER depreciation deduction in the first year of use. Please note that purchasers of X5s and X6s that placed such vehicles in service already in 2014 will also be able to take advantage of the additional bonus depreciation write-off, as the new Law applies to all qualified assets placed in service in 2014. Please act on this now as there is a very short window of opportunity. For a Very Limited Time! The X5 and X6 lead the segment with a wide array of features and benefits. One that everyone may not be aware of is a very significant tax deduction that is available when the vehicle is purchased for business use. The IRS categorizes SUVs with a gross vehicle weight in excess of 6,000 lbs differently than other luxury automobiles. As a result: Business owners that purchase an X5 or X6 may be eligible for an Immediate Tax Write-Off of up to $25,000 of the Purchase Price. Furthermore, an additional Bonus Depreciation Tax Write-Off is also available for such NEW vehicles purchased and placed in service on or before December 31, 2014. Here’s an example of how the math plays out….. X5 Purchase Price: $60,000 with 100% Business Use • Immediate tax depreciation write-off = $25,000 • Additional 50% bonus depreciation deduction ($60,000 - $25,000) X 50%) = $17,500 • 1st year Depreciation Write-Off (($60,000 - $25,000 - $17,500) X 20%) = $3,500 • Potential total year depreciation of $25,000 + $17,500 + $3,500 = $46,000 That’s a really substantial savings. To qualify, the X5 or X6 must be purchased (not leased) and must be used for at least 50% for business purposes. Time is of the essence. This is an opportunity to influence business owners to capitalize on this larger tax benefit. To ensure a business owner can take advantage, the X5 or X6 must be placed into service by December 31, 2014. Now, neither you nor I are accountants. We are in the business of providing vehicle advice not tax advice. Customers with questions regarding this topic should consult their individual tax adviser to determine their eligibility for this deduction.
Posted on: Mon, 22 Dec 2014 19:42:28 +0000
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