However, we have a wrinkle. For machinery including passenger cars, trucks and vans purchased after September 8, 2010 and before January 1, 2012 the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 increased first year bonus depreciation for NEW equipment purchased and placed in service to 100%. ...Technically, the law that established MACRS/IRS depreciation did not take into account future laws limiting passenger auto depreciation, nor bonus depreciation-therefore when 100% depreciation is taken, there is nothing left to depreciate... Read more »
Woo Hoo, the IRS Increases Mileage Rate
Do you use your car for your business or for work? If you keep good written records, the business use of your car can be a very nice business deduction, unreimbursed employee expense, or your employer may even reimburse you. On January 1, 2011 the optional mileage rate was 51 cents per mile-that's more than a dollar for every 2 miles you drive for business. In recognition of the increase in gas prices, the IRS announced they would increase the optional mileage rate to 55.5 cents per mile on July 1, 2011; normally they only adjust this rate once per year. Read more »
Deducting Business Use Passenger Vehicles
Many business men and women use their own personal car, truck or van for their business. Others have put their personal vehicle in their business’ name. Still others have a fleet of passenger vehicles for the use of their business. Passenger vehicles are listed property which requires special documentation of [...] Read more »