Tax Benefits To Buying A Heavy Duty Work Truck, SUV or Van
As a small business owner, you look for every available way to keep more of your hard earned money. You already know Broadmoor Motors specializes in Heavy Duty Work Trucks, SUV’s and Commercial Vans, but did you know that buying one for your business before the end of 2015 could bring you big tax benefits? Under section 179, there are significant tax deductions available for business owners when they purchase a heavy duty vehicle with a gross vehicle weight rating (GVWR) of more than 6,000 pounds. This deduction could result in the ability to deduct $25,000 of the vehicle’s cost as a business expense.
How do you know if the commercial van or truck you’ve been eyeballing qualifies? Follow these guidelines:
- Must be placed into service before the end of the tax year
- Have a Gross Vehicle Weight Rating of more than 6,000 lbs
- At least 50% of its use must be for business
- Purchased from a dealer (no private sellers)
- Deduction must be taken from profit and not loss
As always, check with your financial or tax adviser before making a purchase you hope to receive a tax deduction from buying. We have an ever changing, commercial inventory filled with work trucks, cargo vans, box trucks, transit vans, and utility vehicles. While we are experts in finding our customers the quality, pre-owned vehicles they’re looking to buy, we have to admit we’re not tax experts. We encourage you to talk to your tax accountant or financial adviser about how the purchase of a heavy duty vehicle before the year ends could benefit your business.
If you’re in the market for a commercial vehicle, we invite you to check out our entire Commercial Inventory. With locations in Caledonia and Hastings to better serve you, Broadmoor Motors is local, family-owned & operated, and believes in letting our customers shop in a pressure-free atmosphere. We’re here for all your Car Rental, Sales and Service needs.