It's the last week in November 2020 and it’s time to examine your existing Business and Personal (yes, Personal) Cars, SUVs, Trucks, and Vans for some profitable Year-End Business Tax Deductions.
In this article, let’s first look at your prior and existing business vehicles that you or your pass-through business owns. Then, we will take a look at your personal vehicles as a possible source for a last-minute tax-saving deduction.
Let's start with prior and existing business vehicles.
Your first step is to identify your gain or loss on a sale. Once you have or know what the gain or loss is, know these basic rules:
Gains attributable ...
Here’s an easy question: Do you need more 2020 Tax Deductions? If yes, please read on.
Next easy question: Do you need a replacement Business Vehicle?
If yes, you can simultaneously solve or mitigate both the first challenge (needing more deductions) and the second challenge (needing a replacement vehicle), but you need to be using your vehicle and have it in service on or before December 31, 2020.
To ensure compliance with the “Placed in Service” rule, drive the vehicle at least one business mile on or before December 31, 2020. In other words, you want to both own and drive the vehicle to ensure that it qualifies for the big tax ...