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Tax Deductions in 2024

Fleet Tax Deductions for Small Businesses in 2024

If you own a small business or if you are self-employed out near Clinton, did you know you can lower your taxes owed by purchasing new fleet vehicles for your business in 2024? That's right! Section 179 of the United States Federal tax code allows for a business tax exemption of up to $1,220,000. The maximum expense deduction for Sport Utility Vehicles (SUV's) is $30,500 this year. That means business owners near Charles County can get a nice 2024 Chevrolet Equinox EV and deduct the costs of using the vehicle off your taxes owed! Isn't that incredible.

Keep in mind, the limit is reduced by the cost of property your company places in service this year when it exceeds $3,050,000. You can consult with a tax professional for the details on this particular limiting factor.

When you consider this immense reduction in cost for your business located near Alexandria VA will receive, it's like a Christmas or Hannukah gift from your dear old Uncle Sam! Come on down to Fort Washington Chevrolet today and find our more, or you can also give our sales consultants a call at 240-724-1006.

What is Depreciation?

Depreciation can be thought of as an income tax deduction for your business near Clinton. This allows you to recover the cost of wear and tear you receive on your company property through using it for work related tasks. This applies directly to your cars, trucks and SUV's because you may use them every day!

How do your fleet vehicles qualify for a tax deduction for your business located near Alexandria VA? To be Depreciable, your vehicles must fit these criteria:

  1. You must own them. This is because if you leased your vehicles, then the dealership who owns them would receive the tax depreciation on them.
  2. They must be used in your business or in the way you produce income. You can't only use the vehicle for your enjoyment.
  3. They must have a useful life span which can be calculated and estimated.
  4. They must be expected to have a life span of more than one year.

The U.S. Government offers a special depreciation allowance of 60% for qualified property acquired by your business after September 27th, 2017, but then placed in service during the 2024 calendar year.

You can let the IRS know how you feel about these tax rules by following this link to their Comments page. How can you ask the IRS a question? You can follow this link to their Help page and use the search feature to find the relevant topic about your business.