The 2011 Tax Stimulus Package provides significant tax benefits to business owners. New for 2011, if you purchase an eligible vehicle, the available benefits in the first year may include:
- Up to a 100% purchase price deduction, or
- Partial purchase price deduction followed by a 100% depreciation deduction
VEHICLE DEDUCTION ELIGIBILITY
There are some limitations to the expense deduction, including vehicle eligibility.
UP TO $11,060 total deductions per vehicle on C70, C30, S40, S60, S80, V50, V70, XC60, XC70
UP TO $25,000 total deductions per vehicle on XC90
Each individual's tax situation is unique; therefore, please consult your tax professional to confirm vehicle depreciation deduction and tax benefits. For more details, visit irs.gov, or to calculate your bonus depreciation, visit depreciationbonus.org there are some limitations to the expense deduction, including vehicle eligibility.
This program pertains to vehicles placed in service in the United States during 2011, with no written binding contract for acquisition in effect before 2011. Vehicles must be used for business at least 50% of the time. Depreciation limits reduce by every percent of personal use less than 100%.
Each individual's tax situation is unique, therefore, please consult your tax professional to confirm vehicle depreciation deduction and tax benefits. Consult your own tax advisor prior to claiming any credit.
IRC Section 280F(d)(7)(B) requires that the limitation under IRC Section 280F(a)(1) be adjusted annually, based on the CPI automobile component for October of the preceding year. IN Revenue Procedure 2010-18, the IRS adjusted the Section 280F depreciation limit to $3,160 for trucks and vans and $3,060 for passenger automobiles placed on service during 2010, which are not subject to the Section 168(k) election to decline the bonus depreciation and AMT depreciation relief. The applicable first-year depreciation limits have been temporarily increased by $8,000. These amounts are subject to a CPI adjustment for 2011.
Each $25,000 deduction contributes to the $500,000 aggregate deduction limitation under Section 179.