The X5 and X6 lead the segment with a wide array of features and benefits. One that everyone may not be aware of is a very 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 an example of how the math works:
X5 Purchase Price: $60,000 with 100% Business Use
- Immediate tax depreciation write-off @ $25,000
- Additional 50% bonus depreciation deduction (($60,000 - $25,000) X 50%) @ $17,500
- 1st year Depreciation Write-Off (($60,000 - $25,000 - $17,500) X 20%) @ $3,500.
- Potential total year depreciation of $25,000 + $17,500 + $3,500 = $46,000
That's a 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 Asheville is not an accountant nor does it pretend to be** We are in the business of providing vehicle advice not tax advice. Customers with questions regarding this topic should consult their individual tax adviser to determine their eligibility for this deduction.