X5 & X6 Business Tax Deduction


 

The BMW 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. 

As a result: Business owners that purchase an X5 or X6 may be eligible for a year-end tax write-off.  The IRS categorizes these SUVs differently than other luxury automobiles, making them eligible for SECTION 179 VEHICLE EXPENSING. 

Here is an example of how the math works: 

X5 Purchase Price: $65,000 

Immediate tax depreciation write-off at $25,000 plus, 
- Bonus depreciation: $65,000-$25,000 x 50% = $20,000 
- 1st year regular depreciation: $65,000-$25,000-$20,000 x 20% = $4,000 
- Total year depreciation = $49,000 

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% business purposes.  

To ensure a business owner can take advantage, the X5 or X6 must be placed into service by December 31, 2017. 



*BMW of Rockville is not an accountant nor does it pretend to e.**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 eligibility for this deduction.