Did you know that businesses benefit from the ability to expense the cost of certain vehicles in the first year of purchase?
That’s right, you your business may be able to combine some of the hottest incentives in the automotive industry and accelerated tax deductions for an opportunity to purchase eligible 2009 and 2010 model year Armadas, Pathfinders, and Titans.
With the IRS Section 179 expense allowance a business owner may be able to deduct the actual cost of new business vehicles weighing more than 6,000 lbs. GVWR in the year of purchase. Section 179 limits the expense of $25,000 for eligible Armadas, Pathfinders and Titans with beds 6 feet or shorter. Titan pickups with beds longer than 6 feet in 2009 can deduct the full cost of the vehicle in the first year. Additionally, the Economic Stimulus Act of 2008 increased the depreciation deduction to 50% if the remaining investment (if any) for these vehicles. In order to qualify, the vehicle must (among other requirements) be used for business purposes 50% of the time. In contract, a car, truck, or SUV used by a business but weighing 6,000 lbs. or less normally does not qualify for the section 179 expense allowance and will typically be limited to normal depreciation. In 2009 this will be a maximum amount of $3,060 plus an additional $8,000 as a result of The Economic Stimulus Act of 2008.
Eligible Vehicles 6,000 lb. GVWR or Higher IRS Section 179 Expense Allowance
2009/2010 Nissan Pathfinder S/SE/LE/LE V8 4×4 $25,000
All Armadas Eligible $25,000
2009/2010 Nissan Titan King Cab SWB/ Crew Cab LWB Actual Cost
2009/2010 Nissan Titan Crew Cab SWB $25,000
Example:
Armada Purchase Price: $50,000
IRS Section 179 Deduction: $25,000
50% Depreciation year 1*: $11,160
Total Deduction in year 1: $36,160
Balance to depreciate(years 2-5): $13,840
*maximum allowance
Current Incentives:
Pathfinder: $2,500 Customer Cash or 1.9% APR for up to 60 months
Armada: $4,000 Customer Cash or 0.0% APR for up to 60 months
Titan: Up to $5,000 Customer Cash or APR as low as 0.0% for 60 months
*Purchase your new vehicle to qualify for a tax deduction on your sales tax…
-Please consult with your tax advisor to determine eligibility of the additional $25,000 or more in deductions in the first year federal tax deductions. Financing subject to credit approval. Offer valid on vehicles in stock and ends December 31, 2009.
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