You probably like your vehicle just as it is. But wouldn’t you like it far better if it were producing tax deductions?
Perhaps significant deductions, immediately. And the Tax Cuts and Jobs Act (TCJA) gives you the tax reform road map on how to do this.
Of course, to get your vehicle producing tax deductions, you need to strip your vehicle of its status and re-dress it as a business vehicle, and this is not difficult.
Your former personal vehicle can qualify for up to 100 percent bonus depreciation in its new business dress.
Example. Sam has a personal vehicle with a tax basis for depreciation of $31,000. With 70 percent business use on this 100 percent bonus depreciation qualifying vehicle, Sam has a new $21,700 tax deduction for this year ($31,000 x 70 percent).
Let’s examine what you would need to do to get your vehicle producing tax deductions and how much you could write off this year.