Are you self-employed? Pull up a seat while I share three encouraging pieces of information about our beloved tax code. If you buy a new or pre-owned heavy SUV, pickup, or van this year and put it to use in your business, you’re potentially eligible for 100% first-year bonus depreciation for the business-use percentage of the cost.
More good news: Setting up a business office in your home can lead to additional tax savings. Still more good news: You may also be able to claim the qualified business income (QBI) deduction. Here’s how self-employed folks can cash in on these three valuable federal income tax breaks. Note: By self-employed, I mean a sole proprietor, partner, or LLC member who is treated as a sole proprietor or partner for federal tax purposes. Onward. Step 1: Buy a suitably heavy machine 100% first-year bonus depreciation is available for eligible vehicles that are placed in service between now and 12/31/22. But this juicy write-off is only available for an SUV, pickup, or van that’s heavy enough. That means one with a manufacturer’s gross vehicle weight rating (GVWR) above 6,000 pounds that’s purchased (not leased) this year. So, you can write off 100% of the business-use portion of the cost of a sui …