Whether you use your vehicle entirely or partially for business purposes, you can claim tax deductions. But the exact amount you're eligible to write off will depend on the detailed calculation methods as instructed by the IRS. A tax expert can help you in this regard.
If you're planning to purchase a new business vehicle, you should look for one that will give you tax benefits. The good news is, in case you've set your eyes on some luxury vehicles, you could get deductions on them as well.
Here are our favorite cars you can write off in your tax returns:
Tesla Model X
With a base price of $122,440, the Tesla Model X is one of the best EV business vehicles you can consider this year.
Equipped with all-wheel drive and impressive acceleration, this one has a maximum driving range of 335 miles. You can access the company's widely available Superchargers to charge your vehicle or get it charged at home.
The standard version of Model X makes 670 hp, while the upgraded version bumps it up to 1020 hp. The MPGe ratings are equally good.
This one's a full-size luxury SUV starting at $78,900. Comfortable and reliable, this lineup makes for the perfect business vehicle, especially for those looking for something spacious.
The base model GLS450 offers 362 hp while the more powerful GLS580 offers 483 hp. Electrification is available for both models. Mercedes equips the lineup with an impressive suspension system, so you'll never feel road bumps.
The fuel economy isn't the best, but you get compensated with smooth rides, comfortable interiors, and an overall premium feel.
Starting at $57,245, the GMC Yukon will make your business trips extra luxurious. Divided into three rows, the interior is spacious, comfortable, and well-equipped. Be it for carrying passengers or hauling cargo, it can do both seamlessly.
All models of the lineup are powered by V8 engines – either generating 355 hp or 420 hp. And if you need high towing capacity, you could go with the turbo-diesel engine.
Fuel economy is not Yukon's strong suit, but the turbo-diesel engine does offer good numbers – up to 27 mpg on the highways.
Another business vehicle you could consider is the BMW X5. With a base price of $61,595, this midsize SUV wraps up its interior with a suite of luxurious features. This one would be the perfect work vehicle, as it will make commutes more comfortable than ever.
The PHEV variant should be your top preference in this lineup. The xDrive45e's six-cylinder engine combines with an electric motor to generate 389 hp. It has 30 miles of electric-only range.
xDrive45e excels at fuel economy – 46 MPG on hybrid, and 26 mpg in general. The two-row cabin is roomy in itself, with a third-row available as an added option.
Bonus Tip: Make the Most of Hybrid Vehicle Credit
To promote the use of clean energy, there is a special tax credit available for plug-in hybrid vehicles (PHEVs) and electric vehicles (EVs). You can claim up to $7500 for qualified vehicles.
Simplify Taxation for Your Business
Taxation for business can be tricky, especially if you're handling everything by yourself as an owner. Hiring a tax expert would save you loads of time and energy. At Accountants Now, our team of industry-leading accountants will take care of the A-Z of your business tax, making the filing process seamless and ensuring you get the maximum benefits out of tax write-offs. Contact us today.