RECEIVE AN IMMEDIATE TAX WRITE-OFF
Business owners that purchase an X5 or X6 in 2016 may eligible for an Immediate Tax Write-Off of up to $25,000 of the Purchase Price before they calculate their 2016 depreciation expense associated with the vehicle. Both amounts are then deductible for 2016 tax purposes.
X5 Purchase Price example: $60,000 with 100% Business Use
- Immediate tax depreciation write-off = $25,000.
- Additional 50% bonus depreciation deduction ($60,000 - $25,000) X 50%) = $17,500
- 1st year Depreciation Write-Off (($60,000 - $25,000 - $17,500)) X 20%) = $3,500.
- Potential total first year depreciation of $25,000 + $17,500 + $3,500 = $46,000.
To qualify, the X5 or X6 must be purchased (not leased) and must be used at least 50% for business purposes.We Are Not Accountants!
The information above is provided as a reference only, and may not apply in your situation. Should you have any questions regarding the tax benefits, and their application in your situation, please consult a tax professional.