April 25, 2019

Finance Your Bulletproof Car

Armormax is a premier vehicle armoring company that armors all makes and models of cars and trucks for both civilian and military use. Other solutions include armored helicopters, boats, buses and trains. Armormax provides the lightest and most technologically advanced protected vehicles available in the industry.

Levels of protection range from B4 through to B7 whilst adding less than 20% to 35% of the weight when employing conventional armoring methodologies.

Our aim is to provide the best armoring solution and the offer the best product on the market that provides our clients with peace of mind.

Armormax is able to armor existing, commercially procured vehicles as well as augmenting existing military armored vehicles with its internationally patented composite and laminate armoring solutions.

Financing Your Armored Car

Today we want to explain our new armored car financing program, insurance, and benefits so that those are interested can apply and own an armored vehicle by financing it.

Armormax works with financing company‘s whose mission is…

“is to bring advantageous equipment finance solutions to our clients with integrity, depth of knowledge and speed. This is achieved through our ongoing vision to bring expertly constructed flexible financing solutions that accurately meet the needs of business owners. We believe this is accomplished through valuable advice, creativity, enhanced profitability and the tenacity to get to “yes”.”

Vehicles and Section 179

One of the more popular uses of the Section 179 Deduction has been for vehicles. In fact, several years ago the Section 179 deduction was sometimes referred to as the “Hummer Tax Loophole,” because at the time it allowed businesses to buy large SUV’s and write them off. While this particular use (or abuse) of the tax code has been modified with the limits explained below, it is still true that Section 179 can be advantageous in buying vehicles for your business.

Vehicles used in your businesses qualify – but certain passenger vehicles have a total deduction limitation of $11,160, while other vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes qualify for full Section 179 deduction (full policy statement available at: IRS.gov ).

Note: the deduction for business vehicles is the same whether they are purchased outright, leased, or financed

What Business Vehicles Qualify for the full Section 179 Deduction?

Note that because many vehicles can serve business and personal function both, the rules for business vehicle deductions are always evolving, and can be complicated. It’s easier to list the typical vehicles that will generally qualify for a full section 179 deduction, and then discuss the rules for other vehicles.

Many “work vehicles” that, by their nature, are not likely to be used for personal purposes will usually always qualify for full Section 179 deduction. This includes the following vehicles:

·         Vehicles that can seat nine-plus passengers behind the driver’s seat (i.e.: Hotel / Airport shuttle vans, etc.).

·         Vehicles with: (1) a fully-enclosed driver’s compartment / cargo area, (2) no seating at all behind the driver’s seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.

·         Heavy construction equipment will qualify for the Section 179 deduction, as will forklifts and similar.

·         Typical “over-the-road” Tractor Trailers will qualify.

What are the limits on Typical Passenger Vehicles used for Business?

For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in qualified business use, the total deduction including both the Section 179 expense deduction as well as Bonus Depreciation is limited to $11,160 for cars and $11,560 for trucks and vans.

Exceptions include the following vehicles:

·         Ambulance or hearses used specifically in your business

·         Taxis, transport vans, and other vehicles used to specifically transport people or property for hire.

·         Qualified non-personal use vehicles specifically modified for business (e.g. work van without seating behind driver, permanent shelving installed, and exterior painted with company’s name)

·         Other heavy “non-SUV” vehicles and trucks with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify for a full deduction (although some “extended cab” pickups may have beds that are too small to qualify).

Limits for SUVs or Crossover Vehicles with GVW above 6,000lbs

Certain vehicles (with a gross vehicle weight rating above 6,000 lbs. but no more than 14,000 lbs.) qualify for deducting up to $25,000 if the vehicle is purchased and placed in service prior to December 31 and meets other conditions.

Update / IRS Guidelines for Vehicles

As stated earlier, the vagueness of business vs. personal use can be complicated. To help, please refer to page 6 of these Instructions for Form 2106 to read the exact IRS language.  For complete IRS information on Depreciation and Amortization, see Instructions for Form 4562

Other Considerations

Vehicles can be new or used (“new to you” is the key). The vehicle must be acquired in an “arms-length” transaction and titled in the company name (not in the company owner’s name).

The vehicle must also be used for business – and these depreciation limits are reduced by the corresponding % of personal use if the vehicle is used for business less than 100% of the time.

Remember, you can only claim Section 179 in the tax year that the vehicle is “placed in service” – meaning when the vehicle is ready and available – even if you’re not using the vehicle. Further, a vehicle first used for personal purposes doesn’t qualify in a later year if its purpose changes to the business.

As always, if you have questions, consult your tax professional for exact rules regarding Section 179 and vehicles.

If you are interested in having your armored car financed please call 801-393-1075 or email [email protected]