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Home»Personal Finances»Tax Tips»Let the IRS Help Pay for Your Next Vehicle!

Let the IRS Help Pay for Your Next Vehicle!

The IRS Will Contribute as much as $25,000
when you purchase your next vehicle!

cashandkeysAs a business owner, you spend a lot of time, mileage and money on your vehicle and it can get expensive, but you have a “Uncle” who can help you if you know how to ask!

Your “Uncle Sam” through the IRS can help you purchase your new vehicle in 3 different ways depending upon the vehicle your purchase –

  • Deduct up to $11,060 for your vehicle weighting less than 6,000 pounds.
  • Deduct up to $25,000 for your vehicle (SUV, Truck or Van) weighing more 6,000 but less than 14,000 pounds.
  • Get a Tax Credit up to $7,500 for your Electric or Hybrid Vehicle and still deduct up to $11,060 for your vehicle weighing less than 6,000 pounds.
  • Of course, you must use the vehicle more than 50% in your business and it must be new (or new to you). (You can’t qualify using a vehicle that was converted from personal use to business use.)

    If you purchased a vehicle in the past 3 years and did not take advantage of these deductions, we may be able to file amended return to reduce your tax debt or increase your refunds.

    If you purchased in 2015 and filed an extension, let’s review your return to see if you’ve claimed this deduction. Take advantage of these deduction while your “Uncle” is still in the giving mood!

    Written by

    James Fleming is an accountant and Certified Tax Coach with over 30 years experience working in and with small businesses. His company, Fleming Financial Solutions offers tax planning and preparation, bookkeeping, business plan writing and marketing consulting.