Why this might be the best year to buy that G-Wagon.

In the video, Ben breaks down how Section 179 of the tax code allows independent contractor physicians to benefit from purchasing a vehicle weighing over 6,000 lbs, like a G-Wagon.

This deduction was previously 100% in 2022 and 80% in 2023. In 2024, it allows you to deduct 60% of the cost in the first year. For example, if you buy a G-Wagon for $100,000, you can write off $60,000 in the first year, potentially saving $18,000 in taxes assuming a 30% effective tax rate. The remaining 40% of the deduction will be spread over subsequent years.

Ben also answers some common questions:

Q1: Do you have to pay cash to qualify? A: No, you can finance the vehicle and still enjoy the deduction.

Q2: Does it need to be new? A: No, it can be pre-owned but new to you.

Q3: What happens to the remaining 40%? A: It will be depreciated over subsequent years.

The bottom line? If you're considering purchasing a G-Wagon or any other qualifying vehicle, 2024 might be the best year to do so to help gain tax savings.