Year-End Tax Planning: Part 5
Consider buying a truck or SUV. If you buy a new or used truck or SUV that has a gross vehicle weight over 6,000 pounds and has a truck chassis, you may be able to write off the whole business use this year. Thus, if you buy a new Cadillac Escalade for $60,000 and use it 90% for business, you can write off 90% of the $60,000 which is $54,000 this year.
Get a good tax tracker like Taxbot to properly document your automobile deductions and other expenses. If you didn’t document things right this year, this is a good time to start. There is NEVER a bad time to start good habits plus you can go back and reconstruct your expenses.
Expenses can either be repairs, written off immediately, or improvements that require depreciation over many years. New rules allow businesses who incur a fix up under $2,500 to treat it as a repair. If you need to fix up equipment or investment property, consider keeping each repair to under $2,500.
Finally, get my latest books “Lower Your Taxes: Big Time” and “Achieve Financial Freedom: Big Time.” The first title should be fully updated for the new tax law beginning around December. You want it ti say “2019-2020” edition even though it will apply to 2018-2019. Don’t ask about the discrepancy in years. This was a decision by the publisher.
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