Purchasing a Vehicle

[Abigail]

How does purchasing a vehicle benefit me with daycare taxes? Should we go buy a vehicle before the end of the year (Wednesday!) or is it not such a big tax help that waiting til January wouldn't hurt?

We've done many other big purchases with daycare but never needed a car yet so just need to know how that would benefit if at all for taxes to wrap up the year! Thanks!

[Michael]

Maybe some answers here: https://daycare.com/forum/tags.php?tag=deduction+-+car

[TomCopeland]

Vehicle

How does purchasing a vehicle benefit me with daycare taxes? Should we go buy a vehicle before the end of the year (Wednesday!) or is it not such a big tax help that waiting til January wouldn't hurt?

We've done many other big purchases with daycare but never needed a car yet so just need to know how that would benefit if at all for taxes to wrap up the year! Thanks!

If you are planning on buying a new vehicle, and if you use it more than 50% of the time for business purposes, then there is a tax benefit for buying it in 2014 rather than 2015. That's because of the 50% bonus depreciation rule which allows you to depreciate it faster.

If you buy a used vehicle or use it less than 50% of the time for business, it won't make a big difference if you buy it in 2014.

See my article on the 50% rule:http://www.tomcopelandblog.com/2014/...-end-of-2.html