For multi-billion-dollar multinationals, a few $10,000 here or there is insignificant in the greater scheme of things, but for small businesses, a sum of five figures can be significant. And if you own or manage a small business, and have been needing to replace commercial vehicles in your fleet, now is the time to act, according to an Automotive News report. A provision as part of the federal stimulus legislation will expire at year's end allowing businesses that purchase commercial vehicles costing up to $60,000 to deduct $46,000 in depreciation in the first year. The provision in Section 179 of the tax code applies to businesses that buy or lease less than $2 million or less in equipment in 2013.
Vehicles weighing more than 6000 pounds are eligible for 100 percent of the depreciation, but any commercial vehicles can qualify for partial depreciation. Dealers that sell large volumes of commercial trucks say the hottest selling season for them is typically between October and December, but the clock ticking on this tax break could make for even hotter year-end sales for HD trucks. If you've been considering upgrading your fleet of trucks, there may be no better time to act than now. Talk to your accountant about taking advantage of the potential savings.
Source: Automotive News (subscription required)