BMW of Minnetonka located in Minnetonka, Minnesota is offering tax benefits on the BMW X5 and X6 SUVs to customers located in Twin Cities, Minneapolis, Plymouth, Maple Grove, Edina, Eden Prairie, Wayzata and other surrounding cities in the area.
The X5 and X6 lead the segment with a wide array of features and benefits. A benefit that everyone may not be aware of is a very significant tax deduction that is available when the vehicle is purchased for business use. As a result of the Act, business owners may now deduct up to 100% of the vehicle purchase price when the vehicle is purchased for business use, as The IRS categorizes SUVs with a gross vehicle weight in excess of 6,000 lbs differently than other luxury automobiles.
As a result of the Newly enacted Tax Cuts and Jobs Act:
Example:
X5 or X6 Purchase Price: $60,000 with 100% Business Use
This presents a substantial tax saving for business owners. To qualify, the X5 or X6 must be purchased (not leased) and must be used for at least 50% for business purposes. This deduction applies to both new and used vehicles acquired by purchase, so long as the acquiring taxpayer had not previously used the acquired vehicle, and did not acquire the vehicle from a related party.
Please note that the bonus depreciation percentage phases down by 20% per year after the tax year 2022 (i.e., bonus depreciation percentage is lowered to 80% for 2023, 60% for 2024, 40% for 2025, and 20% for 2026).
