2010 Form 1040 Tax Breaks: Cell Phones and Luxury Autos

The 2010 Form 1040 reflects a number of new tax breaks we want you to be aware of so you can take full advantage of them.  Today’s post addresses changes to the tax laws regarding small business cell phones and luxury vehicles.

Cellular telephones (cell phones) and other similar telecommunications equipment have been removed from the categories of “listed property.” This means that cell phones can be deducted or depreciated like other business property, without onerous record keeping requirements.

Also, first-year luxury auto limits for vehicles first placed in service in 2010 are $11,060 for autos and $11,160 for light trucks or vans (for vehicles ineligible for bonus depreciation, or if the taxpayer elects out, $3,060 and $3,160, respectively).

If you have any questions regarding these changes, or tax planning, please contact our office.

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