Current Tax Incentives
Tax Benefit Update for 2011 (January 13, 2011)
Great News! The newly enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (The Act) has provided you with some new tax based resources that could prove to be very helpful in 2011. Outlined below is a summary of what is currently available.
X5 and X6 Depreciation
As a result of “The Act”, business owners may now deduct up to 100% of the vehicle when the vehicle is purchased for business use. The IRS categorizes SUVs with a gross vehicle weight in excess of 6,000 lbs differently than other luxury automobiles. As a result:
Business owners that purchase an X5 or X6 may be eligible for a 100% Write-Off of the Purchase Price if the vehicle was acquired January 1, 2011 through December 31, 2011.
Example:
X5 Purchase Price: $60,000 with 100% Business Use
• A 100% bonus depreciation deduction (($60,000 x 100%) = $60,000
That’s a really substantial savings. To qualify, the X5 or X6 must be purchased (not leased) and must be used at least 50% for business purposes. This is an opportunity to influence business owners to capitalize on this larger tax benefit. To ensure a business owner can take advantage of the 100% bonus depreciation, the X5 or X6 must be placed into service by December 31, 2011 in order to get the deduction in 2011.
For Current IRS Tax Credits for BMW Diesel please follow link below
Economic Stimulus Package Offers Tax Breaks for New Car Buyers
Posted:
Friday, February 20, 2009:
In an effort to drive traffic to dealerships and boost new car sales, the recently passed American Recovery and Reinvestment Act offers a tax break to individuals who purchase a new car on or after February 17, 2009.
Tax deduction:
Purchasers of new vehicles for the remainder of 2009 are eligible for an above-the-line deduction for state and local sales taxes or excise taxes paid on the purchase.
For example, assuming a four percent sales tax on a $40,000 new vehicle, the above-the-line deduction would equal $1,600.
The new law puts two limits on this new deduction:
1. Deductible sales or excise taxes cannot exceed the portion of the tax attributable to the first $49,500 of the purchase price of any one vehicle.
2. Any deduction will be phased out to the extent the purchaser has adjusted gross income exceeding $125,000 ($250,000 for joint returns).
Fine print:
Any newly purchased domestic or foreign vehicle, including cars, SUVs, light trucks or motorcycles, first used by the taxpayer that weighs no more than 8,500 gross pounds, generally qualifies.
Sales taxes paid on a lease agreement are not included.
If you are hungry for more details about the Act, you can find the bill online: www.recover.gov
