Business-related purchases of new or used vehicles may be eligible for Section 179 expensing, and business-related purchases of new vehicles may be eligible for bonus depreciation. But Sec. 179 expensing limits are scheduled to go down in 2013, and bonus depreciation is scheduled to disappear. So you might benefit from purchasing business vehicles before year end.
For 2012, the $139,000 Sec. 179 expensing limit generally applies to vehicles weighing more than 14,000 pounds. The limit is $25,000 for SUVs weighing more than 6,000 pounds but no more than 14,000 pounds.
Vehicles weighing 6,000 pounds or less are subject to the passenger automobile limits. For 2012, the depreciation limit is $3,160, but it’s increased by $8,000 for vehicles eligible for bonus depreciation.
Many rules and limits apply to these breaks. So if you’re considering a business vehicle purchase, contact us to learn what tax benefits you might enjoy if you make the purchase by Dec. 31.
The 2012 gift tax annual exclusion allows you to give up to $13,000 per recipient tax-free without using up any of your lifetime gift tax exemption. If you and your spouse “split” the gift, you can give $26,000 per recipient. The exclusion is scheduled to increase to $14,000 ($28,000 for split gifts) in 2013.