IRS Tax Code 179

IRS Section 179Section 179 of the IRS Code is set to expire December 31,2016. As I see it, there is little chance Congress will extend it regardless of who wins the Presidency. It is the “mother lode” of all deductions for limousine companies. I point out that the specific langauage in tax code 179 is “a vehicle used directly in the trade or business of transporting persons or property for pay or hire” are not considered passenger automobiles rated at 6000lbs or less of unloaded gross vehicle weight which have deductible limitations. There appears to be confusion with accountants regarding the interpretation of vehicle classification and its deduction status. Point this out to them.

If you are considering buying a new or used livery type vehicle before year end, consult your accountant to determine the tax benefits as well as any carryback NOL the past two years as many owners had losses due to the economy. Don’t procrastinate.

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