Tax Savings Still Available for “Heavy” Trucks and Vans

As you know, unfavorable depreciation rules apply to most passenger autos and light trucks used in business. For a vehicle acquired in 2014, depreciation deductions are generally limited to the following amounts:

 

Cars

 

Light Trucks and Vans

Year 1

       $  3,160

      $   3,460

Year 2

           5,100

           5,500

Year 3

           3,050

           3,350

Year 4 and thereafter

           1,875

           1,975

 

If the business use percentage is less than 100% (which is often the case), your deductions are even smaller. You must multiply the above numbers by the business percentage.

Exception for Certain Trucks and Vans. Certain trucks and vans qualify for much more favorable depreciation rules. The key here is finding a vehicle that is not considered a “passenger auto” under the tax rules. According to IRS regulations, a truck […]