Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Biz Owners: Save on Taxes - Buy & Use New Vehicles/Equipment Before Year-End!

Name: Painting Biz Owners: Save on Taxes - Buy & Use New Vehicles/Equipment Before Year-End!
Uploaded: 2024-12-23T14:15:05+00:00
Duration: 47 s
Channel: Daniel Honan
Description: In this concise segment, the presenter advises painting business owners to consider buying new vehicles or equipment before December 31 if the purchase…

23 Dec 2024 · 1 min

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In this concise segment, the presenter advises painting business owners to consider buying new vehicles or equipment before December 31 if the purchase is already planned for business growth. By placing the asset in service—meaning it must be used for at least one business mile before year‑end—owners can claim the 2024 tax year deductions. The video highlights the availability of 60% bonus depreciation for 2024 and the continued option of Section 179 expensing. For vehicles under 6,000 lb, there is a maximum deduction around $20,400, subject to tax‑professional guidance. The core message is to align any necessary business purchases with the year‑end deadline to maximize tax write‑offs, rather than buying solely for tax benefits.

Chapters

buy new vehicle or equipment and place it in service before the end of the year. Now, I don't recommend buying anything that's not going to benefit your business. We don't spend a dollar to save 20 cents on taxes. But if you're going to be buying something anyway to help grow your business, if you can do it before December 31st, then we can write it off on 2024's tax return. We have 60% bonus depreciation still in 2024, and we've always got Section 179. If it's a vehicle, that weighs under 6,000 pounds. We're gonna bump up against some limits, about $20,400 is the max, but talk to your tax pro and kind of work that out. The key here is just getting it purchased and placed in service, which means you gotta drive at least one business mile before the end of the year, and then you unlock 2024.