Did you know that even if you don’t qualify for a home office deduction, you can still depreciate business equipment and furniture in your home.If your home office is used by others in your home for other activities, you lose the home office deduction. But if the furniture and equipment (computers, printers, chairs, desks and other furniture) is used for business, the business percentage of the assets can be depreciated. In 2011, you can take 100% bonus depreciation or section 179 on that portion for a major tax writeoff.So you will still get some business deductions out of furniture in your home.
Brian’s Tax Musings
As I discussed yesterday, having a car or truck over 6000 lbs exempts it from luxury car rules. Here is a table of autos and trucks with Gross Vehicle Weight Ratings (GVWR):http://www.alphaleasing.com/businessaspects/over6000gvwr.aspSo go ahead and buy that gas guzzler for your business- you will have tons of business deductions for gas, insurance and depreciation.
Brian’s Tax Musings
If your business buys a car with a curb weight over 6000 pounds or a truck or SUV over 6000 pounds gross loaded vehicle weight (GVWR) in 2011, the luxury auto rules don’t apply to this vehicle. What does this mean? In 2011 you can deduct the following depreciation on a new car or truck:Car cost over $15300 with curb weight over 6000 lbs - all of it because of bonus depreciationCar cost over $15300 with curb weight under 6000 lbs - $11,060 (Luxury Auto Limits)Truck with GVWR over 6000 lbs - all of it because of bonus depreciationTruck with GVWR under 6000 lbs - $11,260 (Luxury Auto Limits)So if you are buying a car for business and you need something heavy-duty, make sure it is heavy!Tomorrow I will give a list of cars and trucks with Gross Vehicle Weight Rating (GVWR) over 6000 pounds.