Business (WW2016_4)

Why should you use me as your one-stop professional? With business and law degrees plus IRS  and private practice experience, I maybe the only professional you need. Let me demonstrate.

Penny saved pound foolish. I will admit that sometimes I will work with contracts that I find on the Internet. But you shouldn’t. Why? Because my three years in law school and many years of private practice have taught me when a contract does not mean what it says. Statutes and court decisions often give unusual meaning to contract language. For example, contracts for the sales of goods by law include unwritten warranties unless you expressly exclude such warranties. Things not said in your LLC articles and agreement are controlled by statute.

My advice: If a contract has any importance for you, run it by me.

Big SUV = Big Deductions. Most autos are subject to depreciation limits. Get twice the tax impact by purchasing a big SUV (one with over 6000 gross vehicle weight). I know I have mentioned this before, but many clients are overlooking it. For such a vehicle, new law allows 50% bonus depreciation and higher ceilings for expensing. You can expense up to $25,000 of the cost and deduct half of the balance as bonus depreciation. The remainder may qualify for regular five-year depreciation. Used SUVs don’t get bonus depreciation.

For example, If your business buys a new large SUV for $65,000 and puts it in service this year. In 2016, you can expense $25,000, and you can deduct 50% of the remaining cost, $20,000, as bonus depreciation. You can deduct as regular depreciation 20% of the $20,000 balance, $4,000. If the vehicle is used 100%  for business, the first-year write-off is $49,000.

The tax break is even greater for big pickup trucks, which I will cover next issue.

About Wis Laughlin

I help clients with tax preparation and IRS representation, estate planning, and complex contracts, including LLC's. As a former IRS tax attorney in their National Office. Law.com picked Wis in 2017 and several prior years as one of the Top Tax and Estate Lawyers in Tennessee. I am your advocate, not your accountant. I don't tell you what you can't do. I show you how to do it.
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