Monthly News: November 2018

The 2018 tax laws have made it easier for the IRS to apply the accuracy-related penalty for substantial
understatement of tax when the 20% business tax is involved. The threshold is now the larger of $5,000
in extra tax or 5%.

If you buy a heavy SUV used solely for business, the full cost can be deducted in the first year as a result
of bonus depreciation. The SUV must have a gross weight rating of at least 6,000 pounds. 100% of the
cost of a big pickup truck can also be expensed.

The limits on each of the yearly depreciation deductions for vehicles has also increased.