🚗Two methods for writing off a vehicle: standard mileage method and actual expense method
💡Bonus depreciation allows you to deduct a percentage of the vehicle cost
📈Increased depreciation limits for heavy vehicles
💰Section 179 deduction and bonus depreciation can help maximize your tax deduction
🧐Choose the method based on your business use and vehicle cost
What is the difference between the standard mileage method and the actual expense method?
—The standard mileage method allows you to deduct a certain amount per mile driven for business, while the actual expense method allows you to deduct actual expenses such as gas, maintenance, and depreciation.
What is bonus depreciation?
—Bonus depreciation allows you to deduct a percentage of the vehicle cost in addition to regular depreciation. It can help maximize your tax deduction in the first year of owning the vehicle.
Are there different tax rules for heavy vehicles?
—Yes, heavy vehicles have special tax rules. Section 179 deduction allows you to deduct a certain amount of the vehicle cost, and bonus depreciation can further increase your tax deduction for heavy vehicles.
Should I lease or buy a business vehicle?
—The decision to lease or buy a business vehicle depends on various factors such as your cash flow, tax situation, and business needs. Consulting with a tax professional can help you make the best decision for your specific situation.
How do I determine which method to use for writing off my vehicle?
—You should consider factors such as your business use of the vehicle, the cost of the vehicle, and your overall tax situation. The standard mileage method is often used for high business mileage, while the actual expense method may be more beneficial for higher-cost vehicles or lower business mileage.
00:00Learn how to maximize your vehicle tax deduction in 2023
01:31Understand the two methods for writing off a vehicle: standard mileage method and actual expense method
05:46Discover the benefits of bonus depreciation for maximizing your tax deduction
07:15Learn about the increased depreciation limits for heavy vehicles
10:32Understand the Section 179 deduction and how it can help maximize your tax deduction
