Here’s how you could get a big deduction. Let’s say your business buy a new $65,000 SUV for business purposes. You know that 100% deducted cars are subject to more IRS scrutiny, so instead keep good records to prove that you have 80% business use.
- You get a $25,000 Section 179 deduction, right off the top.
- Because the car is new, you get to take advantage of the new 50% bonus depreciation. That’s $13,500.
- You get the normal depreciation amount of $2,700.
All told, you just got a deduction for $41,200! Make sure you check out the upcoming new TaxLoopholes’s Special Report, “ Nine Hot New Tax Loopholes Strategies from the Economic Stimulus Act of 2008,” available exclusively as part of your membership in the First Class Lounge.