Amy wants to buy a new car for her business but is unsure whether to do it before year-end or wait until 2025.
According to Cox Automotive, August through September is a good time for business or personal car shopping. The new models are out; many dealers still have last-year models at substantially reduced prices. Car prices also generally drop at the end of any calendar quarter.
In 2023, the Tesla Model Y was the top-selling car model worldwide. The Toyota RAV4 ranked second.
In addition to negotiating a potentially lower price on the vehicle Amy can realize potential tax advantages buying in 2024.
For example, under IRS Section 179, she could write off some or all of the vehicle’s purchase price this year as long as she uses it for business more than 50% of the time (and certain other requirements are met), rather than having to claim depreciation of the vehicle price over five tax years.
Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.