Here is a "Tax Tip You Can Bank On" that could save you THOUSANDS!
2008 is a Great Year to Buy a New Car...... But
it may be your Final 'Great Year.'
If you didn't buy a new car last year because somebody said, "Honey,
they shrunk the deductions," that was a wise move.
But things are different in 2008.
Maximum tax write-off for a passenger vehicle in 2008 is $10,960
- almost $8,000 higher than last year. That's a huge jump!
And it's even
better for heavy vehicles!
Take a look.
First, let's look at PICK-UPS. You can expense the entire purchase cost IF it
weighs more than 6,000 pounds, AND has a truck bed at least six feet long, AND has a separate cab.
Now, how about SUVs? If a new SUV weighs over 6,000 pounds, you can deduct $25,000 of the cost
as a Section
179 election, PLUS half of the balance as "Bonus depreciation," PLUS
20% of any remaining amount as "regular" depreciation.
That means, if you purchase a $40,000 SUV, you could write off up to $34,000
this year.
Now here's the IMPORTANT fine print...
- ·
That example assumes 100% business use, otherwise pro-rate
the numbers.
-
·
This only applies if
you use the vehicle at least 50% for business purposes.
-
·
This applies only to NEW
vehicles, not to used ones that are "new to you."
-
·
Section 179 election can apply only IF
your business is profitable.
Beware of this sneaky little secret...
The Feds don't publicize this much (meaning, not at all!!!) but
what if you get an SUV and take all the tax breaks you are eligible for, but in some future year -- before you have
fully depreciated it -- your business-use falls below 50%?
Bottom line: you're screwed. So don't let it happen!
Remember,
point #2 in the "Fine Print" section above says, "This only applies if you use the vehicle at least
50% for business purposes." That means for every year, not just the year you purchase the vehicle.
So, what if your business use DOES fall below 50% before the vehicle is
fully depreciated? It's not pretty.
The Feds will "recapture" all of the deductions
you took that exceed what your deductions would have been under the "straight line method" of depreciation.
OUCH!!!
Strong Recommendation: See your tax pro before purchasing a new vehicle, to
be certain whether or not all of these possible deductions will apply to your specific tax situation.
If they do apply, this could be the best year to purchase a new vehicle.
Next year we'll have a new President and a new Congress. After
that, all bets are off!
There's a "Tax Tip You Can Bank On" that I'll bet your tax pro didn't
tell you about.
Happy car-buying!
P.S. -
Congress
has been active! Lots of home-business tax breaks are about to get even better.Watch your email for more tax-savings news in the next few days.
P.P.S. -
Don't keep this good news to yourself. Forward this email to everyone you know who has (or should have)
a home-based business.
P.P.P.S. -
Do you have
regular conference calls with your team?
Want to dramatically accelerate your
team's recruiting and closing?
Want to literally END retention concerns?
Call my tele-conference scheduling assistant,
Lisa, at 1-888-9-TAX-CUT.
Home Business Tax Savings Inc.
2907 Shelter
Island Drive
Suite 105
San Diego, CA
92106
US
