As 2020 draws to a close, now is the ideal time to take steps towards reducing your 2020 tax liability. Purchasing the commercial vehicles that your business needs before the end of the year is one of the best moves you can make because this year’s tax code allows up to $1,000,000 in first year write offs on qualifying vehicles.By taking advantage of this deduction, you could realize up to $5,439 in tax savings1 and up to a $25,900 tax deduction for qualified vehicles.
You may qualify if:
- You are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles,during the 2020 tax year.
- Put the equipment into service between January 1, 2020 and December 31, 2020.
- Used this equipment for business purposes more than 50% of the time.
- Spent less than $3,500,000 on this equipment.
Mercedes-Benz Sprinters are the van of choice for many small businesses like yours. With ample cargo area, best-in-class service intervals of up to 20,000 miles2 and legendary Mercedes-Benz engineering, your Sprinter fleet represents a savvy investment for your business now and well into the future.
In order to take advantage of this deduction, you must purchase or lease the qualifying new or pre-owned Sprinter, and place it into service by December 31, 2020. Please contact us for more details on how we can help you take advantage of this significant savings opportunity before it is too late.
1. $25,900 tax deduction for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicle must be purchased for business use. Please consult your tax professional for more information on applicability of deduction and whether you qualify for the maximum amount available. $5,439 tax savings based on 21% federal tax rate and eligibility to claim full $25,900 Section 179 vehicle deduction. Your tax rate and eligibility may vary. Please consult a tax professional for more information on your federal tax rate and potential tax savings available to you for qualifying purchases. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as such. Federal tax depreciation deductions are subject to change without notice. For more information visit IRS.gov. 2. Driver is responsible for monitoring fluid levels and tire pressure between service visits. See Maintenance Booklet for details. 3. $500 off any in-stock qualifying Mercedes-Benz commercial vehicle. Must take delivery of vehicle by December 31, 2020. See Keenan Motors for complete details.