Getting up to speed – Now may be the time to purchase business vehicles

Description

Abstract: The Tax Cuts and Jobs Act (TCJA) more than tripled depreciation allowances for “luxury autos.” It also temporarily enhanced “bonus” depreciation for some business assets, boosting first-year depreciation deductions for passenger autos and allowing businesses to immediately deduct the full cost of heavier vehicles. This article suggests that, to reduce the costs of purchasing one or more vehicles for business purposes significantly, business owners may be able to take advantage of these enhanced tax breaks.