BUSINESS AUTO CONTRACT TAX BREAKS FOR 2008
Posted on June 1st, 2008 by Dan Penning
Know Your Business
Suttons Bay – June 2008
There are a few supercharged tax breaks for autos purchased or leased for business use in 2008. If your business buys a new, heavy SUV this year (“heavy” means a loaded weight over 6,000 pounds) for $50,000, it can expense $25,000. The remaining cost is subject one-half to bonus depreciation and one-half to regular depreciation. The result is a total first year write-off of 80% of the purchase price!
If your business leases a car this year worth more than $18,500, IRS tables will allow you to report about 25% less income than in 2007.
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