Vehicle write-offs are crucial for real estate investors looking to save money on taxes. Listen to real estate expert Rob Rowsell’s personal CPA explain how to write off your vehicle expenses for maximum savings.
Vehicle Write-Offs Tax Tips
Rob’s CPA Kevin Bassett starts off explaining that every business owner should look into vehicle write-offs. Whether you invest in real estate or you own another kind of business, you can write it off on your taxes. The only requirement is that you must use the car or truck for business purposes at least 50% of the time in order for your LLC or S-Corp to claim ownership. Otherwise, you must personally own it, and claim the standard mileage deduction, which is 67 cents per mile.
Kevin then moves on to review the 2023 vehicle depreciation rates. You can write off up to $20,200 of the cost of a regular car, including bonus depreciation. Vehicle write-offs for SUVs that weigh more than 6,000 lbs are eligible for up to $28,900 deduction. When writing off a truck over 6,000 lbs with a six foot bed, there is no limit to your write-off. This is not a recommendation to go buy a $100,000 truck at the end of the year, but if you need one, and your business profited enough, go for it.
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