X5 & X6 Tax Benefits

 

The X5 and X6 lead the industry with an impressive array of features and benefits. 

One that our customers may not be aware of is a significant tax deduction that is available when the vehicle is purchased for business use. 

The IRS categorizes SUVs with a gross vehicle weight in excess of 6,000 lbs differently than other luxury automobiles. As a result:
  • Business owners that purchase an X5 or X6 may be eligible for an Immediate Tax Write-Off of up to $25,000 of the Purchase Price.
  • Furthermore, an additional Bonus Depreciation Tax Write-Off is also available for such vehicles purchased on or before December 31, 2016.

Here's a quick example of how the math works:

X5 Purchase Price: $60,000 with 100% Business Use      
  • First, an immediate tax depreciation write-off @ $25,000
  • Then, an additional 50% bonus depreciation deduction (($60,000 - $25,000) X 50%) @ $17,500
  • Also, the 1st year Depreciation Write-Off (($60,000 - $25,000 - $17,500) X 20%) @ $3,500.
  • So, a potential total year depreciation of $25,000 + $17,500 + $3,500 = $46,000

Those are really substantial savings. To qualify, the X5 or X6 must be purchased (not leased) and must be used for at least 50% for business purposes.

To ensure a business owner can take advantage, the X5 or X6 must be placed into service by December 31, 2016.

**BMW of Boston is not an accountant nor does it pretend to be**  We are in the business of helping our customers take advantage of the best deals possible and providing vehicle advice, not tax advice. Customers with questions regarding this topic should consult their individual or business tax adviser to determine their eligibility for these deductions.

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Herb Chambers BMW of Boston

1168 Commonwealth Avenue
Directions Boston, MA 02134

  • Sales: (877) 283-4516
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