Vehicle write-off 2009
Tax Guru, Can you tell me what kind of tax incentives there for purchasing a new vehicle? I own a small business and would like to get a 3 row seating vehicle for that i.e minivan or suv. Can you tell me all the tax write-offs I can get for this year in regards to the new vehicle. I was reading a posting by smartmoney.com and there was an article similar to what I'm alking about but was written acouple years ago and I am looking for current (2009) info. Here is an exerpt out of that article: "Example: Say your small business uses the calendar year for tax purposes. Before the end of 2008, you buy a new $65,000 Cadillac Escalade and use it 100% for business for the remainder of the year. On your 2008 business tax return or form, you can claim the $25,000 Section 179 deduction. Then you can write off another $20,000 under the 50% first-year bonus depreciation break explained later [($65,000 - $25,000) x 0.5 = $20,000]. Finally, you can generally write off another $4,000 under the normal tax depreciation rules [($65,000 - $25,000 -$20,000) x 0.2 = $4,000]. Your first-year depreciation deductions add up to $49,000, which is a whopping 75% of the vehicle’s cost."
Thanks for your help in advance...Limo