BMW Federal Tax Deduction

   

Your BMW model may be eligible for a GBW Federal Tax Deduction! 

At BMW of Pittsburgh, we want to help you save on a new luxury vehicle. Especially if you're using it for business! Contact us to find out more about BMW Tax Deduction conditions.

Since the BMW X5, X6, X7, and the All-Electric iX each have a Gross Vehicle Weight Rating (GVWR) which exceeds 6,000 pounds, they may be eligible for full depreciation during the first year of ownership when used solely for business purposes*.
Purchasing an X5, X6, X7, or iX could potentially deliver significant tax deductions as compared to a similarly priced luxury sedan.

These BMW vehicles are heavy SUVs because of their Gross Vehicle Weight Rating, which is the vehicle's maximum weight when fully loaded with people and/or goods. As a result of this classification, they can serve as "transportation equipment" for your company. This results in a savings for you and your organization!

 

HOW TO QUALIFY FOR SIGNIFICANT TAX BENEFITS

  1. Purchase a BMW luxury model with a gross vehicle weight rating of over 6,000 pounds, such as the BMW X5, X6, X7 or iX.
  2. This car must be purchased before December 31, 2023.
  3. This luxury automobile must be used exclusively for work purposes.

FUTURE SAVINGS


You may be eligible for increased first-year depreciation on qualified vehicles, such as the BMW X5, X6, X7, or iX, under Sections 179 and 168(k) of the Internal Revenue Code. This means you can deduct 100% of the depreciation on your business's transportation equipment.

Example:
If you acquire a BMW X7 for business usage, you can deduct 100% of the vehicle's depreciation. This can amount to more than $90,000! Other luxury automobiles that do not qualify may qualify for a deduction of only 20%, or less than $20,000. **

You can continue deducting for as long as you use your BMW for business purposes. Depreciation deductions on luxury automobiles may be carried forward until the vehicle is completely depreciated or sold. This is an excellent asset if you own a business. You can invest the savings from driving a BMW in your business, allowing it to develop even more.


Contact Us to Learn More About BMW Tax Deductions today!



COMPARISON OF TAX DEPRECIATION


Comparisons are provided below that show the tax benefits for company owners who purchase a new BMW X5, X6, or X7 before December 31, 2023. To learn how this information can be applied to your specific business situation, please check with your tax specialist.


BMW X5BMW X6BMW X7
$66,750 BMW X5 VS $66,750
LUXURY CAR

Total allowable depreciation for 1st
year of ownership**		$78,300 BMW X6 VS $78,300
LUXURY CAR

Total allowable depreciation for 1st
year of ownership**		$92,600 BMW X7 VS $92,600
LUXURY CAR

Total allowable depreciation for 1st
year of ownership**

BMW X5**
 100% Depreciation
 $66,750

VS

Luxury Car
 27% Depreciation
 $18,200


BMW X6**
 100% Depreciation
 $78,300

VS

Luxury Car
 23% Depreciation
 $18,200


BMW X7**
             100% 
     Depreciation
 $92,600

VS

Luxury Car
 20% Depreciation
 $18,200

How can I save more on taxes?

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