I’m not missing the point. Yes you can get a huge deduction now but in reality it will eventually only equal actual dollars out of your pocket (due to recapture). Anyways if you would like to pay more for something so you can get a larger deduction go for it.
How long do you need to keep the car until recapture no longer applies?
Forever, lol. Always have to recapture if there is any gain ever on disposal. Same with biz use dropping below 50%. Obviously, the longer you hold the less gain/recapture to worry about. Now, a very dirty trick a lot of CPA’s pull - for one reason or another - is that the old cars "mysteriously* disappear from depreciation schedule upon disposal. Highly illegal!
The good news is that recapture rate is 25%, So, for someone say in 35% bracket plus SE taxes, etc. it can still be a win. Again, QBI deduction should another consideration, especially since it might be going away if Biden wins.
No, it will NOT equal in almost all cases due to difference in tax rates and other situations (i.e. QBID).
Wow. Can I get this deal with 10K?
I sent you a message. Thank you sir.
My fellow hackrs. Please STOP asking me to match this deal . I was not the dealer who did this stupid deal and I will NOT do it for anyone .
Good luck with your search and please stop wasting both of our times .
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Mods: requesting to please close thread.
This was supposed to be informative and evidence of what is achievable. Yet folks have been asking for handouts and dealer info, and it’s unfair to fellow dealers.
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Amen to that Alex !!!
Closed per OP’s request.