Want to Write Off Your Luxury Vehicle?
It may feel too early to talk about tax season, but as we sit in the middle of the 10th month of 2024, it’s time to start considering how your purchases this year can impact your taxes — especially if you’re a business owner. In particular, consider how updates to Section 179 of the tax code could impact your deductions and any decisions about purchasing equipment or luxury vehicles in the final months of 2024. EXAMINING SECTION 179 Under Section 179, business owners are allowed to write off equipment or software up to a certain amount, with a built-in phase-out threshold for incomes that reach the upper limit of qualification. In 2024, the cap amount of writing off equipment is just over $1.2 million, with a phase-out threshold of just over $3 million. According to U.S. Bank, these numbers have steadily increased since 2021. DOES ONLY EQUIPMENT QUALIFY? Business owners often incorporate every part of their lives into their business, including items purchased purely for personal use. For example, a contractor may drive their new vehicle to a bid, or a store owner may use their vehicle to transport their products to a local market. Federal tax laws allow business owners to write off any vehicle assets used at least 50% of the time for business. Section 179’s rules apply in many of these scenarios. For example, those who purchase heavier (more than 6,000 pounds) luxury vehicles can receive a higher deduction on the purchase. Additionally, those with used vehicles also qualify because the vehicle is new to them, and those who lease their luxury vehicles can also benefit. The caveat is these vehicles must be used for at least 50% business, and the greater the percentage of use on the vehicle, the greater the deduction (up to the cap). Tax laws constantly change, and the best way to ensure your company is prepared this tax season is to work with trusted professionals. To learn more about how your wealth plan can work for you, including how it can build toward your business goals, contact our team at Patriot Wealth today. WHAT YOU NEED TO KNOW ABOUT SECTION 179
TAKE A BREAK
Pumpkin Pie French Toast
INGREDIENTS
DIRECTIONS
1. Lightly oil a skillet and heat over medium heat. 2. Whisk half-and-half, pumpkin purée, eggs, cinnamon, vanilla, and pumpkin pie spice together in a bowl. Stir in walnuts until evenly distributed. 3. Place 1 slice of bread in the bowl and let it soak briefly to coat both sides. Lift bread to let excess liquid drip back into the bowl, then transfer to the hot skillet. 4. Cook for 2–3 minutes or until golden brown, then flip and cook the other side until done. 5. Stir batter to redistribute walnuts and repeat with other slices of bread, cooking in several batches if necessary. 6. Serve warm with maple syrup.
• 1 1/2 tsp vegetable oil, or as needed • 1/2 cup half-and-half • 1/4 cup canned pumpkin purée
• 3 large eggs • 1 tsp ground cinnamon
• 1 tsp vanilla extract • 1/4 tsp pumpkin pie spice • 1/4 cup finely chopped walnuts • 8 slices day-old bread • Maple syrup, to taste
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