How Does the Section 179 Vehicle Tax Write-Off Work?
When you purchase a vehicle for your business, you have the option to write the vehicle off over time through the process of depreciation. For instance, if your company purchases a Chevrolet Silverado 2500HD Double Cab Standard Box 2-Wheel Drive Work Truck for $50,000, you may be eligible to write off around $10,000 every year for the next five years. It’s important to understand these numbers are arbitrary and are strictly being used as an example.
Although most people will agree this depreciation method is better than no write-off at all, most business owners in Conyers, McDonough, and surrounding areas would rather write-off the entire purchase price of the equipment for the year they purchased it.
As a matter of fact, if you were able to write off the entire amount, the business may be more inclined to purchase more equipment this year instead of waiting for another five years. This is the premise and the purpose of the Section 179 vehicle tax write-off.
It’s designed to stimulate the economy in a positive direction and motivate business owners to make capital purchases. The majority of small business may be eligible to write-off the entire purchase price of the vehicle in the year 2017, which can be up to $510,000.