Understanding tax rules can be daunting. Not only do they change often, they have even been known to change in a single tax season. In other words, after you receive your W2 forms and before the April 15th deadline. So here is a little tip for understanding what vehicles qualify when they are used for business or non-personal use.
Annual depreciation limits apply to autos and trucks, but some special vehicles are exempt such as qualified non-personal use vehicles, which by their nature are not likely to be used more than a minimal amount for personal purposes. If your truck or van has been specially modified in ways that limit personal use – by the installation of permanent shelving, for example – annual limits will not apply. Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat are also qualified non-personal use vehicles.
As always, if you have any questions you should ask an accounting professional, preferably a Certified Public Accountant. Remember that in order for CPA’s to maintain their certification they must take continuing education credits to stay on top of tax laws.
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