Monday, December 2, 2013

Accelerated Depreciation for Commercial Vehicles Ends in 2013

Tax deductions for large purchases, such as company vehicles, may be substantially decreased after 2013.

Qualifying vehicles include all RAM 1500, 2500 and 3500 trucks; RAM cab/chassis trucks; Ram Cargo Van; ProMaster Van; and the Dodge Durango and Grand Caravan. See the potential depreciation schedule at for more information.

For example, the maximum first-year depreciation deduction for a new $65,000 heavy SUV placed in service during 2013, and used 100% for business, would generally be $49,000. After 2013, the maximum first-year depreciation deduction for a new $65,000 company vehicle placed in service after 2013 and used 100% for business purposes will only be $11,160 (or $11,360 for a light truck or van).

Unless Congress decides to change this, bonus depreciation won't be available after 2013. There is still a short amount of time left to take advantage of the current depreciation schedule. Contact Melloy Dodge for more information.

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