Strategic Vehicle Deductions (Section 179)

home so let's talk about another strategy right now what's going to be happening is the autumn of automotive dealers heavy equipment dealers these airs are going to get inundated with people looking at making purchases and I'm one of those guys the reason I'm here is we just spend an hour and a half doing my preseason tax planning before we ever turned on any cameras whatsoever so let's talk about purchasing equipment what is tax deductable what is not I'm talking about automotives and some of these rules are not going to apply when you guys are watching this video because it may be old by this time so this is something to at least put on your radar screen because every vehicle it's over six thousand and one pounds goes into a different classification which allows for a higher rate of is it first year depreciation correct which is called the 179 deduction section 179 you google that there'll be tons of information they even have their own site section 179 but that was one of the things that change with the 18 tax cuts is raising that figure and just trying to you know promote putting more money into the business and pay less tax is what it's for and that's what we use it for it's a business stimulus that the government actually has done to help small guys get by but also to make new purchases and can you actually tell us what this business deduction is so guys understand it what what the business deduction is so what the 179 is yes it's so you buy a vehicle you can deduct 25 grand okay so yeah just on the vehicles you can take up to twenty five thousand on the 179 deduction if the vehicles in the six thousand to fourteen thousand range you know bigger vehicles if you don't rush things like that they're called no limit applied vehicles otherwise if you buy a passenger vehicle you cannot take as much of that upfront