2017 has important tax planning implications for businesses that are considering purchasing new or used capital equipment, including hearses and limousines.
According to Section179.org this important tax deduction is designed with businesses in mind.
That’s why almost all types of "business equipment" qualify for the Section 179 deduction.
Section 179 offers small businesses an opportunity to maximize their purchasing power!
However, it’s subject to change yearly without notice, so take advantage of this opportunity now, the New Year is right around the corner!
Mostly all of the equipment your business will purchase, finance or lease qualifies for the deduction (see Section 179 Qualified Financing).
Make sure to do your homework and verify that your company is leveraging the Section 179 Deduction this year.
Hearses, transportation vehicles used specifically for people or property for hire, and qualified non-personal use vehicles specifically modified for business are claimable under section 179.
Certain specifications for qualifying vehicles include; a van without seating behind the driver, with permanent business-use equipment installed, and with a company name on the exterior, and are “placed in service”- meaning the vehicle is ready and available.
Additionally, there are possible deductions allowed on “passenger automobiles” such as SUV’s and Vans which weigh more than 6000 pounds.
In 2017, the Section 179 deduction available for most used and new capital equipment is $500,000, provided you spend no more than $2 million on capital purchases for your business.
If you exceed that, there is a deduction of a dollar for every dollar above that you spend.
2017 also allows a 50% “Bonus Depreciation” on the remaining amount of qualified assets placed in service once the standard benefits are exhausted.
So, if you were thinking of putting off a purchase of a new or used hearse or limo, you may want to talk to your accountant first.
Then talk to Directors Choice.
2017 may be your year!