Monday, November 21, 2011

More Vehicle Choices, More Businness Tax Deductions Opportunities for 2011

Here's how it works.......Business Owners can write off up to 100% of the purchase cost on their next new Ford.  And just so we are all clear, Gresham Ford is providing this information as a customer service.  Anything written in this article or spoken by Gresham Ford Sales staff should not be construed or provided as tax advice or as a promise of potential tax savings or reduced tax liability, we do cars not taxes.  Your individual tax situation will vary so see federal rules and tax guidelines.  For more information also check the IRS website or speak to your tax advisor soon. 

Many businesses that incest in new equipment will be able to write off up to 100% of these purchases on their 2011 returns.  Normally, business spread these deductions over several years.  But now, due to the tax benefits provided under IRC Section 168 (k), qualifying businesses can write then off in the first year they are placed into service. 

Section 168 of the tax law allows a company to take a bonus depreciation deduction of up to 100% of the cost of qualified property, which include several Ford vehicles.  Unfortunately for the Oregon small business owner these vehicles do not include Mustang Convertibles.  Passenger automobiles under 6000 lbs. GVWR like the Ford fiesta, Focus, Fusion, Taurus, or even the Escape and Explorer may qualify for up to $11,060 in tax deductions.  However to recieve the 100% write off you need to purchase a Truck, Van or SUV over 6,000lbs GVWR like a F-150 or Econoline Van.  There is no set dollar limit to the amount of property that can be deducted as long as it is purchased and placed into service between September 9th 2010 and December 31, 2011.  Many times there is a need for one or more qualifying vehicles.  The vehicle must also be new, not pre-owned and must be used at least 50% for business.  As of January 1st, 2012 abd beyond the bonus depreciation deduction under section 168(k) is scheduled to be reduced from 100% to 50% of the cost of the new equipment.  So December 31st, 2011 could be the deadline for their best opportunity.

Gresham Ford is a founding member of the East County Try Local First Campiagn, helping to drive business to small businesses in Easy County and surrounding.  If you are a small business that needs to purchase a new vehicle before the end of the year, contact Gresham Ford Fleet today at 503.665.0101.