luxury cars depreciation image
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How do you think depreciation effects the type of car purchased? Give a specific example.
Answer
the main reason ppl buy luxury cars, is to look classy and rich.
b/c when you think of BMW, you automatically think $$$.
so when you see someone driving a BMW, first thought that comes to mind is that, "man he/she must be rich!".
but if a luxury car, were the same price as a normal standard... there really wouldn't be a class system.
if you saw someone with a BMW, and the guy next to him had a Ford Focus, you wouldn't automatically think better of the BMW driver. cause essentially their both the same price.
and in the end, trying to buy that "fancy car", really means nothing, cause it's not more valueable than the avg. car.
the main reason ppl buy luxury cars, is to look classy and rich.
b/c when you think of BMW, you automatically think $$$.
so when you see someone driving a BMW, first thought that comes to mind is that, "man he/she must be rich!".
but if a luxury car, were the same price as a normal standard... there really wouldn't be a class system.
if you saw someone with a BMW, and the guy next to him had a Ford Focus, you wouldn't automatically think better of the BMW driver. cause essentially their both the same price.
and in the end, trying to buy that "fancy car", really means nothing, cause it's not more valueable than the avg. car.
Can I deduct a new car purchase for my business?
Kevin
My wife and I purchased a new car in 2006. The car is used for both personal use, and for use in my business. Can I deduct anything on my taxes in regards to the purchase of this car? Would I be listing the car as a business asset?
Answer
Yes, you can. However, the IRS only allows you to take pieces over time. You'll need to look into the instructions for depreciation or form 4562.
Most cars are subject to the luxury auto limits meaning there is a cap as to how much you can deduct as depreciation expense each year. For someone that has never dealt with this before, it can seem very complicated. Now might be a good time to hire a CPA to handle your return. Part of the cost (for the CPA) is also deductible as a business expense!
Yes, you can. However, the IRS only allows you to take pieces over time. You'll need to look into the instructions for depreciation or form 4562.
Most cars are subject to the luxury auto limits meaning there is a cap as to how much you can deduct as depreciation expense each year. For someone that has never dealt with this before, it can seem very complicated. Now might be a good time to hire a CPA to handle your return. Part of the cost (for the CPA) is also deductible as a business expense!
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