Year in and year out, many tax clients rely on purchasing a new vehicle used in their trade or business as a last minute tax planning strategy. Tax professionals surely encourage tax planning one or more years in advance. But we all know our clients, more often than not, realize the pain they are about to face each year somewhere in the third quarter or certainly by Thanksgiving.
Fortunately and especially for those who have professional or operating business clients, section 179 100% depreciation offers some last-minute saving grace. For example, a new 2015 Cadillac Escalade could easily carry an $80,000 purchase price. Assuming 100% business use, the 2014 tax deduction for a third quarter purchase would amount to—