With Tax Day quickly approaching, now is the time to get your financials in order. Being prepared is the best way to make the process as stress-free as possible – plus, it can help you maximize all of your tax deductions. If you purchased a RAM 1500 last year for your business, Mike Toler Chrysler Dodge Jeep® RAM FIAT has information about Section 168 you should know.
What Is Section 168?
Section 168 (or 168(k)) of the Internal Revenue Code enables businesses to take advantage of accelerated depreciation through a bonus provision. Companies are allowed to deduct a large percentage of the cost of qualifying assets (like a vehicle) in the year that they are put into service.
Which Vehicles Qualify?
In order for a vehicle to be eligible for the deduction, it has to have a gross vehicle weight rating (GVWR) over 6,000 lbs, and the RAM 1500 meets this criterion. It is important to remember, however, that your truck had to have been used primarily for business purposes – at least 51% of the time.
Find Your Paperwork
It’s not enough just to tell the IRS that you used your pickup mostly for your business. While it would be nice if they took your word for it, you are going to need to supply proper documentation. This includes records like purchase receipts and mileage logs, so be sure to hang onto these throughout the year.
Take Advantage of Your Business Tax Deductions for the RAM 1500
If you have any questions about Section 168, get in touch with Mike Toler Chrysler Dodge Jeep RAM FIAT. Or, if you didn’t buy a vehicle for your business last year but are interested in purchasing one now, come down to our dealership in Morehead City, NC, to check out the workhorse trucks we have in stock.