Are you thinking of purchasing a vehicle for your business and wondering what type of tax deduction you will receive?
The IRS has published depreciation limits for business vehicles first placed in service this year. Because 50% bonus depreciation is allowed only for new vehicles, these limits are different for new and used vehicles.
* For new business cars, the first-year limit is $11,160; for used cars, it’s $3,160. After year one, the limits are the same for both new and used cars: $5,100 in year two, $3,050 in year three, and $1,875 in all following years.
* The 2012 first-year depreciation limit for trucks and vans is $11,360 for new vehicles and $3,360 for used vehicles. Limits for both new and used vehicles in year two are $5,300, in year three $3,150, and in each succeeding year $1,875.
For details relating to your 2012 business vehicle purchases, please give us a call at Kruger & Clary, CPAs, (970) 482-6947 or e-mail us at info@ftcollinscpas.com