Heavy Vehicle + Deductible Home Office = Major Tax Savings
Your Idaho business can reap major tax savings with the heavy vehicle and home-office combo. The heavy vehicle produces quick deductions.
The home office that qualifies as a principal office eliminates commuting miles, and such an elimination can dramatically increase your business-use percentage of vehicles.
For example, say you bought a $50,000 vehicle that you use 60 percent for business. Your depreciation and expensing elections apply to $30,000. But if you can increase your business percentage to 90 percent with a tax code, defined principal office in your home, your base for tax deductions increases to $45,000. This equals a $15,000 increase, and you did not spend a penny or drive a mile farther to capture it.