Wipfli Alerts & Updates: Now May be the Time to Buy a New SUV for Business

March 31, 2011
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The 2010 Tax Relief Act, which includes a number of business benefits designed to stimulate the economy, has become a subject of discussion in the media lately, particularly the provision that allows businesses and self-employed individuals to take a 100% depreciation deduction on newly purchased SUVs. Rick Taylor, Partner and Wipfli’s Director of Tax, first highlighted this provision in his December 21st TaxThink blog post. In this post, Rick explains this provision in detail and what you must do to take advantage of this golden opportunity. The benefit is particularly beneficial because until this recent change, SUV expensing was limited to $25,000 per year.

To encourage business investment, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) increased the additional first-year (a.k.a. bonus) depreciation deduction from 50% to 100% of the cost of qualified property acquired and placed in service after September 8, 2010, and before January 1, 2012. Businesses purchasing new vehicles can now either take the Section 179 deduction first and depreciate the remaining cost basis or simply expense the full cost in the first year using only the new 100-percent bonus depreciation provision.

Read Rick Taylor’s blog post in its entirety.

Because the rules governing this benefit are tricky, you must be careful to meet the strict provisions of law. Therefore, It is important that you consult with a qualified tax advisor to ensure there are no missteps in the process.

Please contact Rick Taylor at 414.431.9385 or rtaylor@wipfli.com, or your Wipfli relationship executive, with questions or to discuss further.

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