Question for the Money Doctors
Question submitted on Nov 7, 2021.
QuestionHi! I just started a business here in Oregon for real estate investing. I need to purchase a vehicle. The best I’ve read is that if I purchase a pick up I can write off 11,560$ of that vehicle the first year. What does that look like as far as tax return? Do I get that additional amount aside from my employed taxes? I need this vehicle to find more distressed properties, to advertise, and any other business related activities, I just need to know how the taxes work.
Congratulations on your new business. I hope it goes well for you. I'd really encourage you to retain the services of a local CPA. Assuming your venture is an active business for tax purposes, there are nuances in the tax law that could enhance your deduction if your purchase the right category of vehicle.
In any case, again assuming an active business, the deduction you receive would reduce your taxable income. Please note though that this is a deduction, not a dollar for dollar reduction in your tax liability.
Good luck with your venture.
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