Buy a Truck, or Don’t

published December, 2016

There is a temptation to ‘buy a truck’ at year end to increase your Section 179 deduction for 2006. If you need a new truck, or some other capital equipment anyway (like a computer, or more goats), go ahead. If you’re just trying to lower your taxes for 2006, remember you have to pay for that truck eventually. If it doesn’t make business sense, don’t let the tax “tail” wag the business decision “dog.” If you’re planning on trying to get a business loan in 2007, maybe you want to consider paying a little more tax in 2006 to show more income. This is a “planning opportunity” rather than a time to panic.