Whether you buy a vehicle to be used for personal purposes, such as a car or a pick up truck, or you are considering purchasing a fleet of cars, trucks, buses or other heavy equipment leasing vehicles meant to help with your business, it’s important to note the fact that you always have to pay taxes. Tax deductions, however, are still applicable, and you can benefit from them just as in the case of any other asset you use for business purposes.
A fleet vehicle is basically a car or other vehicle that you use for your business. You can use, for example, trucks and vans designed for transportation services, pick-up trucks meant for delivery or repair services, large heavy equipment leasing, or trucks that are designed to transport large quantities of goods over thousands of miles.
As part of Section 179, you should be able to obtain tax deductions for heavy equipment leasing and other business leased vehicles. However, the trick is that you only have the right to do so based on the amount of time you’ve used your cars or equipment for business purposes. So, if you just bought a car last year, and from that time until now, you used it 30% of the time for personal purposes and 70% for business activities, then the tax deduction you can obtain will only apply to that 70%.
