IRS updates car and truck depreciation limits

The IRS issued its annual inflation-adjusted update of depreciation limitations for passenger automobiles (including passenger vans and trucks) placed in service in 2021 (Rev. Proc. 2021-31). The revenue procedure similarly updates income inclusion amounts by lessees of passenger automobiles with respect to vehicles with lease terms beginning in 2021. These limits are updated annually for inflation according to the automobile component of the chained consumer price index for urban consumers. For passenger automobiles to which bonus first-year depreciation deduction applies and that are acquired after Sept. 27, 2017, and placed in service during calendar year 2021, the depreciation limit under…

Got a car lease? Your vehicle could be worth thousands of dollars more than expected because of COVID-19

Sean Larson decided he didn’t need his 2019 Subaru Crosstrek anymore, but he had 16 months left on his lease, so the Seattle resident thought he was stuck. He wasn’t. Many people with leases, such as Larson, are cashing in or turning in their cars early with no penalty. That’s because their vehicles are suddenly worth a lot more than carmakers and dealers expected when they had customers sign up for leases in 2018 or 2019. The shift in favor of leaseholders has come about because of the COVID-19 pandemic, which pushed up prices for new and used vehicles and…

Why You Should Consider Buying Your Leased Car

If you’re nearing the end of your lease, it might make sense in the current market to purchase the vehicle from your Leasing company. Most contracts include a provision to buy the vehicle at a precalculated price set at the beginning of the lease. In normal times, it’s usually not such a good deal, but with new and used cars in short supply and prices surging, the buyout price might represent big savings and actual equity in the vehicle, if you turned around and sold it to a third party. “There was no way for the folks that drew up…

What are the benefits of using cash for cars in San Jose instead of leasing a vehicle?

You might think that Leasing a Car is the best idea for you – however, other businesses can provide you with a better offer than Leasing or Buying a vehicle! Let’s see the difference between Leasing and another selling method that can be more effective in the long run.  Leasing vs. cash for cars San Jose! Which one is better?  What is Leasing? Well, Leasing is the ability to just put down monthly payments for a vehicle so you can drive a vehicle for less per month than you would with Buying a Car. If you are considering Leasing an…

How it works & how much it costs

If you’re looking for a new vehicle, one option is to lease. While Buying a Car gives you access to that vehicle indefinitely, Leasing a vehicle means you’ll generally only pay for the time you drive that vehicle before returning it to the dealer at the end of the lease term. Wondering how to lease a Car? In many ways, it’s a similar process to purchasing a Car. In both scenarios, you and the dealer can negotiate the price of the vehicle you are interested in, which will influence the monthly payments you’ll make. Leasing a vehicle isn’t for everyone,…