Which Vehicles Qualify for 2019 Cadillac Tax Deductions?
Purchasing a vehicle is typically the second largest purchase you will make next to buying a home. Even though the rules have tightened because of tax reform, mortgage interest, and property tax can still be deducted when you own a home. What some people don't know is that even if you don't own a business, you can still deduct taxes from the purchase of your new car on your next income tax filing.
Cadillac offers several new vehicles that are eligible for a tax deduction on your 2019 income tax filing. Two different levels of deductions are available for buyers. The following cars have up to $18,000 in deductions:
- ATS Coupe
- ATS-V Coupe
- ATS Sedan
- ATS-V Sedan
- CTS
- CT6
- CTS-V
- XTS
- XT4
Purchases of the following vehicles may be eligible to have up to 100 percent of the purchase price deducted from 2019 income taxes:
- Escalade
- Escalade ESV
- XT6
- XT5
How Do I Take Advantage of the Tax Deductions?
Make sure that your tax professional knows that you have purchased new vehicles for your business by presenting all relevant papers for tax preparation. The Internal Revenue Service rule under which you can deduct your purchase is called Section 179. The maximum purchase amount that business owners can deduct for Section 179 property, under which business vehicles fall, is $1,020,000 for 2019. The maximum amount for SUVs placed in service is $25,500.
Even if you don't own a business, you may still qualify for a deduction on the sales taxes incurred by your purchase. To do so, you must meet these criteria: You must itemize deductions, and your sales tax deduction must exceed the amount you owe on state income taxes.
Come Into Arrowhead Cadillac to Learn More
Who doesn't want to save money? Stop by our showroom in Glendale, AZ, today, where our finance department can further explain the advantages of Section 179 for your business and which specific vehicles may be best for your situation.
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