The presents are open, your in-laws are gone, and the tree is out at the curb. Have you forgotten anything? Yes. It’s time to focus on the fine points of end of year tax planning, such as how your existing vehicle can produce last-minute. Would you like 2023 tax deductions with one of these five strategies on both business AND personal vehicles.
- Is your child or spouse driving your old business vehicle? If so, find out whether that vehicle has a business loss deduction inside it. If it does, you can take the vehicle from your child or spouse and sell it so you can deduct the business loss.
- Are you self-employed? If so, you can use the same buy-and-sell vehicle strategy before December 31 to reduce both your income and self-employment taxes.
- Did you acquire your current business vehicle via a trade-in before 2018? If so, consider all your trade-ins and calculate your possible loss deduction now. You might find a big deduction.
- Check your current vehicle for a large deduction. If you have a high business-use percentage and low depreciation, you could likely sell that vehicle and find a solid deduction.
- Do you or your spouse own a vehicle (new or used) that you purchased but never deducted for tax purposes? If so, you can convert that personal vehicle to business use to take advantage of 80 percent bonus depreciation.
Want to know more? We welcome you to Begin with a Free Tax Savings Discovery Session Here.