Maximize Tax Savings For 2014 Business Car Purchases

Doctors and Business Owners who purchased a business car in 2014 will be able to boost their tax savings using the $8,000 increase in first-year depreciation, thanks to the recent extension of bonus depreciation. Doctors who purchased a heavy SUV or pickup (Gross Vehicular Weight Rating over 6,000 pounds) by December 31, 2014 are eligible for even greater tax breaks.

Assume a doctor or Business Owner purchased a new SUV for $60,000 in 2014. First, the doctor or business owner can expense $25,000, the cap for SUVs. One-half of the remaining $35,000 cost, or $17,500, can be deducted using bonus depreciation. Another 20% of the $17,500 remaining balance, or $3,500, can be claimed as normal depreciation. Accordingly, with 100% business use, the total 2014 write-off for a $60,000 SUV purchase is $46,000. If the doctor or business owner purchased a used, rather than new SUV, bonus depreciation cannot be claimed, although the other tax breaks remain available.

Information only, please run this by your Professional Tax Advisor to implement.

Contact Connie Dello Buono 408-854-1883 motherhealth@gmail.com or conniedbuono@gmail.com to have a phone chat with a Sr Investment Advisor on ways to reduce income taxes for doctors and business owners via a business structure and financial strategy.

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