fbpx
October 4
Tax Update 2021: Opportunity Knocks Again
2021 Tax Update Graphic

In what has become an October tradition for Liberty Coach, it’s time for our annual update on year-end tax breaks available to qualified new and used coach buyers.

Once again, major federal legislation has had a positive impact on available tax benefits. Under the terms of the CARES Act, which was signed into law in March 2020, the Section 179 deduction has been increased to $1,050,000 for tax year 2021 and beyond. The limit on equipment purchases has also increased, from $2.5 to $2.62 million. What’s more, bonus depreciation is still 100% through 2022, after which it will begin phasing downward.

All of which means it’s an exceptionally good time to buy a new or pre-owned Liberty Coach to be used in your business. To illustrate, consider the following examples outlined by our tax expert:

New Coach Purchase of $2,000,000: A new coach purchaser can receive the benefit of the increased small businesses deduction for the first $1,050,000. The Section 179 deduction is phased out $1 per $1 when the investment limit of $2.62 million is reached. As a result, the purchaser can claim a deduction of $1,050,000 and then apply the 100% bonus depreciation for new equipment to the remaining balance.

Pre-Owned Coach Purchase of $1,200,000: Like the new coach purchase described above, the buyer may deduct $1,050,000 of the purchase price under Section 179. And because bonus depreciation now applies to used equipment, can also be deducted just like with a new coach.

For more detailed information, we encourage you to download and read our 2021 Tax Update, then talk to your tax advisor to see if you qualify.

Facebook Twitter Instagram YouTube