X5 and X6 Tax Benefits

The X5 and X6 lead the segment with a wide array of features and benefits. One that everyone may not be aware of is a very significant tax deduction that is available when the vehicle is purchased for business use. The IRS categorizes SUVs with a gross vehicle weight in excess of 6,000 lbs differently than other luxury automobiles. As a result:

 Business owners that purchase an X5 or X6 may be eligible for an Immediate Tax Write-Off
  of up to $25,000 of the Purchase Price.

 Furthermore, an additional Bonus Depreciation Tax Write-Off is also available for such NEW
  vehicles purchased and placed in service during 2017.

Here's an example of how the math plays out...

    X5 Purchase Price: $60,000 with 100% Business Use
    • Immediate tax depreciation write-off = $25,000.
    • Additional 50% bonus depreciation deduction (($60,000 - $25,000) X 50%) = $17,500.
    • 1st year Depreciation Write-Off (($60,000 - $25,000 - $17,500) X 20%) = $3,500.
    • Potential total year depreciation of $25,000 + $17,500 + $3,500 = $46,000.

That's a really substantial savings. To qualify, the X5 or X6 must be purchased (not leased) and must be used for at least 50% for business purposes.

To ensure a business owner can take advantage, the X5 or X6 must be placed into service by December 31, 2017.

**Autoplex BMW is not an accountant nor does it pretend to be.**  We are in the business of providing vehicle advice not tax advice. Customers with questions regarding this topic should consult their individual tax adviser to determine their eligibility for this deduction.