Your Tax Dollars At Work
Thanks to new guidelines under the IRS Section 179 tax code, many small business that invest in new equipment can now write off up to $1,000,000 of these purchases on their 2020 IRS tax returns. Normally, businesses spread these deductions over several years. But now, with the tax benefits provided under IRS Section 179, many small businesses can write off up to the entire purchase cost of one or more qualifying new Mercedes-Benz trucks or vans. Again, thats up to $1,000,000 worth, all in the first year they're placed in service.
It gives you a chance to deduct up to $25,900 of a qualifying vehicle from your business's gross income during that tax year-all at one. In some cases you may even be able to deduct the full purchase price of your vehicle. (Please consult your tax professional to find out if you qualify for the full amount). It's especially helpful for small businesses who want their tax savings right away, rather than receiving them bit by bit over time through depreciation. It gives many businesses the financial leeway to purchase vehicles they need right away, rather than waiting.
You may qualify if you:
These are the limits on claiming this tax savings:
$25,900 tax deduction for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicle must be purchased for business use. Please consult your tax professional for more information on applicability of deduction and whether you qualify for the maximum amount available.
$5,439 tax savings based on 21% federal tax rate and eligibility to claim full $25,900 Section 179 vehicle deduction. Your tax rate and eligibility may vary. Please consult a tax professional for more information on your federal tax rate and potential tax savings available to you for qualifying purchases. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as such.
Federal tax depreciation deductions are subject to change without notice. For more information visit IRS.gov.