Michelle breaks down two tax law changes that can slash your tax bill through business purchases. Bonus depreciation now lets you deduct 100% of a vehicle's cost in year one, and Section 179 expensing doubled to $1 million for qualifying assets like office upgrades. Whether to claim the full deduction depends on your specific situation.
Hi everyone, this is Michelle. Today we're gonna be talking about vehicle and asset purchases. So we always get the question at the end of every year, should I buy a vehicle? And the answer is yes. If you decide to purchase a vehicle, we can help you save the most taxes on it. There's 2 things that have changed under the new tax law. The first one is bonus depreciation. So it used to be that if you purchased a vehicle, you could only take 50% of the purchase price in the first year, and then we'd have to spread the rest of the deduction out over several years. And with the new tax law, you can actually take 100% of the purchase price of the vehicle in the first year. Of course, you don't have to if it's not going to help your tax situation, and we can help you figure that out, you know, whether it's going to help you to take the whole thing or just part of it in the first year. The second major thing that has changed is under Section 179. So Section 179 is a way to take faster depreciation anytime you purchase an asset, like, for instance, remodeling your office. If you remodel your office, you can now take up to $1 million of the cost of that remodel in the first year instead of only $500,000, which is what it was before. So, these are the 2 major changes relating to vehicle asset purchases that we wanted to talk to you about today.
