The Free Guide to Pension Tax Relief: QROPS, QNUPS & SIPPs

Pension tax relief in the UK has become a major issue for Brits wishing to move or retire abroad. Almost 1 in every 10 people from the UK now lives abroad permanently. In this ever changing landscape, how can British expats and people who have worked in the UK take advantage of their new status and avoid paying UK taxes?

Fortunately, changes in pension regulations means that you can now avoid most UK taxes on your existing UK pension schemes by transferring them abroad. As you are not using any of the services in the UK anymore and you have paid your dues whilst you worked there, why should you continue to pay UK taxes?

Here is the breakdown of the top destinations for Brits living abroad from the BBC’s Brits Abroad project:
An estimated 5.5m British people live permanently abroad. The emigration of British people has happened in cycles over 200 years. The trend is now rising again: some 2,000 British citizens moved permanently away from the UK every week in 2005.

When are you non-resident for UK Income Tax?

You’ll be treated as non-resident from the day after you leave the UK if you can show:

• you left the UK to go abroad permanently or your absence and full-time work abroad lasts at least the whole tax year
• your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years

What do I need to do when I leave the UK?

Your Tax Office will give you form P85 ‘Leaving the United Kingdom’ to get any tax refund you’re owed and work out if you’ll become non-resident. If you still need to complete a tax return after you leave they’ll let you know.


Country name Resident Britons

Australia 1,300,000
Spain 761,000
United States 678,000
Canada 603,000
Ireland 291,000
New Zealand 215,000
South Africa 212,000
France 200,000

What are the choices for Brits moving abroad?

(1) Leave it where it is and continue to pay UK taxes for services you don’t use.
(2) Transfer it to a SIPP, QROPS or QNUPS and avoid most UK taxes.

What taxes do I pay at the moment on my UK pension?

Income Tax on UK Pension Schemes

£0 – £7,475* 0% (this will be 20% for higher rate tax payers in the near future*)
£7,275 – £35,000 20%
£35,000 – £150,000 40%
£150,000+ 50%

*From the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age. Furthermore, the personal allowance will be reduced to zero in the near future for higher rate income tax payers. The allowance is higher for ages 65-74: £9,940 and 75+: £10,090. But, remember you will be drawing your state pension then.

Dividends Tax on UK Pensions

What is dividends tax?

This is tax on the income from UK company shares, unit trusts and open ended investment companies (OEIC’s).
£0 – £35,000 10%
£35,000 – £150,000 32.5%
£150,000+ 42.5%

Capital Gains Tax (CGT) on UK Pensions
Normally you wouldn’t pay GCT on your UK pension unless the plan owns property.

What is Capital Gains Tax (CGT)?

Capital Gains Tax is a tax on the gain or profit you make when you sell, give away or otherwise dispose of something that you own, such as shares or property.
You do not pay CGT on your main residence, car, UK gilts (bonds), lottery winnings or personal belongings less than £6,000.
If you have multiple properties, you will pay capital gains tax when you sell them. You can avoid this through a transfer to a QNUPS. You can set up a QNUPS even if you never retire abroad… more on this later. Most who have multiple properties will be taxed at 28%.
You don’t get taxed on the first £10,600.

CGT Tax rates:

• 18 per cent and 28 per cent tax rates for individuals (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first)
• 28 per cent for trustees or for personal representatives of someone who has died
• 10 per cent for gains qualifying for Entrepreneurs’ Relief (if you are a sole trader or partner in a company).

Inheritance Tax

Not everyone pays Inheritance Tax. It’s only due if your estate – including any assets held in trust and gifts made within seven years of death – is valued over the current Inheritance Tax threshold (£325,000 in 2011-12). IHT is 40% on the amount over this threshold.

If you are an expat living abroad with UK wife: Threshold is £650,000
If you are an expat living abroad with wife who is not from the UK: Threshold is £380,000
If you are single or divorced and living in Spain: Threshold is £325,000
Above this threshold, you pay 40% tax on your estate and assets.

What return would I get on a UK Pension?

State pensions and most final salary schemes are linked to the rate of inflation. New regulations now mean that your pension will increase by the CPI (Cost Price Index) rather than RPI (Retail Price Index). This is lower as it excludes housing costs such as mortgages and council tax.
The affect on your pension means that it will likely increase by about 2.5% rather than 3.5% per year. The target rate is 2%
The Telegraph stated that10m older people get £207m less next year than they would under the current system.
CPI Table (1996-2010)
This is the table for annual rate of CPI since 1996 when they first officially started measuring it. The average over the 13 year period puts it at just below 2%.

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Income tax is a tax paid by citizens to the government on income earned through various sources. It is applicable to both employed and self-employed persons. Income tax is a form of direct tax since it is applicable directly on the income earned. Income tax relief is a set of tax deductions granted by the tax authorities in the case of certain expenses and during certain occasions.

While computing the annual income tax, taxpayers can offset the amount of tax relief granted against the income tax that they owe to the government. Similar to personal tax allowance, tax relief for employees is offered throughout the year. Tax relief is normally placed under various categories as tax relief for employees, self-employed people, training and educational institutions, property, medical and insurance premiums, and payments to charitable institutions.

However, not all expenses come under the purview of tax relief. Common expenses that qualify for tax relief are ones incurred on maintenance, travel expenses, interest on educational loans, certain fees and subscriptions, and contributions to pension schemes. Some part of expenses incurred on lighting, phone bills, and rents is also considered for providing income tax relief. Income tax relief is particularly granted to citizens who are affected by natural calamities. An example of this is the income tax relief granted by the federal government to victims of the devastating hurricanes that hit the southern states in 2005.

It is expected that the “Economic Growth and Tax Relief Reconciliation Act of 2001,” will provide tax relief to taxpayers across the country. The Department of Treasury has estimated that 3.9 million individuals and families will be able to completely eliminate their income tax liability on account of the Act. Also, further estimates show that senior citizens, married couples, and families can expect reductions in their annual income tax liabilities.

Tax-relief checks are checks that the tax authorities mail to taxpayers as a means to lessen the tax burden. They can also be refund checks that are received from tax authorities for taxes paid in advance. After computing the tax assessment for the current assessment year or for the previous year, the tax authorities send any excess tax paid back to the taxpayer.

Tax-relief checks assumed prominence recently with the passing of the Economic Growth and Tax Relief Reconciliation Act of 2001, arguably the first major tax-relief program in the nation in the last two decades. The objective of the legislation is to reduce the burden on taxpayers by disbursing in advance tax-relief checks. The U.S. Treasury mailed checks for up to $300 for singles or $600 for couples in the summer of 2001, and the process is expected to be phased in over the coming years. Significantly, these tax-relief checks heralded the switch from the old 15 percent tax rate to the new 10 percent tax bracket. The objective here was to accord the highest priority to low- and moderate-income families by timely disbursal of the tax-relief checks based on the income tax burden.

The tax-relief legislation also has provisions to lighten the tax burden by allowing deductions for college tuition, student loan interest deductions, and tax benefits from government bonds that are issued specifically for constructing public school buildings. The fact that the relief checks are being sent as a refund to the taxpayers has drawn criticism from various sections of the population who believe that the money should have been directly used for education. Also, an important aspect of the tax-relief checks that has been brought to light is that these relief checks are not rebates or refunds from past overpaid taxes, but an advance on the refund for the future taxes to be filed.

IRS Tax Relief can be found in “Innocent Spouse Relief” if the tax debt arises from a return filed jointly with your spouse. In the case of a joint tax return both spouses share liability for all tax owed. Filing for IRS Innocent Spouse Relief can allow you to be excused from tax debt and penalties.

Defined more broadly in 1998, the Innocent Spouse Relief doctrine allows for IRS tax relief for a spouse who filed a joint return but can show that holding both parties equally responsible for the joint tax liability would be unfair. If certain conditions are met this enables a spouse to be relieved of responsibility for IRS tax, interest, and penalties resulting from the joint tax return. You may be eligible for partial IRS tax relief based on the facts and circumstances of your situation.

Divorce or separation does not automatically qualify you for relief, however it is a factor that the IRS considers.

Filing a joint income tax return has it’s benefits. The drawback is that both spouses are individually and jointly held responsible for all taxes, interest and penalties that result from filing a joint tax return. Sadly, this applies even if you divorce after the return is filed, even if in the divorce decree it states that one former spouse will be responsible to the IRS. In reality one spouse or the other can be held responsible for all the tax due even if all the income was earned by the other spouse. This is why filing for Innocent Spouse Relief is a wise move.

The conditions to qualify for Innocent Spouse Relief are:

A joint tax return has substantial understatement of tax due to unreported taxable income or incorrect tax credits, tax deductions or tax basis provided by your spouse. Unreported taxable income is any taxable income received and not reported on the return by your spouse.

Any unqualified deduction, credits or tax basis of property claimed on the tax return claimed by your spouse that has no basis in fact or tax law. Basically, it is any income that was not reported and deductions that don’t exist and were illegal or non-existent.

To qualify you must show that you did not know, and had no real reason to know that their was a discrepancy or understatement of income or tax. You must show why it would be unfair for the IRS to hold you liable for the discrepancies in the joint tax return, based on the facts and circumstances.

How would you answer these questions:

At the time the joint return was filed, did you believe any tax owed was, or would be, paid? Did your spouse’s income cause the unpaid tax? If the additional tax due is because of an audit, did you know about the unreported income or erroneous items?

The key factor in the Innocent Spouse Relief determination is that you did not know or have reason to know of unreported income.

If you believe you qualify for this form of IRS tax relief file for Innocent Spouse Tax Relief with IRS tax Form 8857. It is advised to consult a tax professional on this matter and to ensure that all options you are entitled to are explored.

This process can appear complicated but it’s as simple as this, if your spouse was cheating on their taxes and you had no knowledge of it, IRS tax relief is available via the Innocent Spouse Relief doctrine.

Fortunately there are several forms of property tax relief that can provide a lot of ease during low income periods.
These types of relief fall into different categories and provide tax reductions in different ways.
The different categories of property tax relief address different problems. These categories are:

Property tax relief for senior citizens, property tax relief for first time homebuyer income tax, property tax relief for low income tax payers, property tax relief for individual income tax payers, and property tax relief for long-term owners. Also, there is an exemption for property tax for homestead.

Property Tax Relief For Senior Citizens

Property tax relief for senior citizens makes sense because it protects those who due to retirement have a lower income and thus can’t afford to pay the same taxes than before retiring. The income reduction experienced by most senior citizens and the higher costs on health insurance and other expenses justify this type of relief that provides their budget with some ease.

Property Tax Relief for First Time Homebuyers

Those purchasing a property for the first time usually do so to establish themselves and often start a family. The government in order to provide protection to this particular situation, offers reductions and exceptions on first time homebuyers property tax and rebates or refunds that can be applied to income tax. It also contributes to encourage the construction and home loan businesses.

Property Tax Relief For Low Income Tax Payers

There are also people that have low income even if not retired. For those with a low income there are also tax relief solutions. Just like with senior citizens, people with low income cannot afford high taxes since they need their income to cope with other expenses. Recognizing this fact, the government provides reductions on property tax for those who can show proof of a low income that wouldn’t otherwise let them afford the full tax returns.

Property Tax Relief For Individual Income Tax Payers

Individual Income tax Credit provides those with low income a refund of taxes that includes property tax. This tax credit is one of the most important poverty reduction tools of the country (other countries use it too) as it returns important amounts paid on taxes to those who have low earnings.
There is a high amount of uncollected tax credits from people that either don’t know or won’t take the trouble to fill the forms needed to collect this money.

We always suggest those with low income to resort to non profit organizations that can aid in the process of obtaining Individual Earned Income Tax Credit.

Property Tax Relief For Long Term Owners

Long term owners can obtain reductions on the amount of money they pay for property tax. Regulations defer from one state to another but most of them have some sort of differential taxations between new owners and long term owners. For further information on this issue and all of the above, you should consult with a consultant agency specialized on taxes. There are also non profit organizations that can provide you with assistance and information on these subjects.

For those who are getting swamped with concern over their tax situation – there’s hope. Tax relief is available to many who are dealing with the burden of figuring out how to catch up on their back taxes. It’s certain that a great deal of people that have back tax issues are more stressed than they have to be – but now there’s a chance you won’t have to handle all or most of that debt, thanks to tax relief available to many people.

To be sure, the IRS can bring much stress to your life if you have problems with unpaid taxes. Whether it’s wage garnishing, or tax liens, or even people who serve as private debt collectors and gain by getting money people owe, the IRS has many ways of collection that can get under our skin. How many of you have gotten incessant phone calls from collection agencies looking to speak to you about whatever debts you may owe?? For those who are trying to keep a business going – or keep the family finances solvent – tax relief can be a huge lifesaver.

There is a certain form of tax relief available to people who foreclose to wash away their debts – it’s called offer-in-compromise. Keep in mind that in cases where foreclosure funds are greater than the amount of debt you owe, the resulting difference can be taxed. So what happens is that your lender should give you a year-end financial statement form, on which the most important things are stating your property value and the amount of debt that was forgiven.

If a disaster of some sort strikes you and your area, you may want to see if there is disaster tax relief offered. This assistance allows those in ravaged areas the ability to try and get back on their feet.

There are also opportunities for those who are low-income and are in dire need of tax relief. In plenty of instances, there are states (that do not have income taxes) which offer programs designed to help struggling people and families. Since the poor have more difficulty overcoming the burden that local and state sales taxes and other taxes can place upon them, income-tax-free states figure that implementing programs such as these help keep families from going under by providing tax relief. Should a state actually have an income tax, then what happens is exemption for those who live below the poverty line. Plus, tax relief is available for homeowners who happen to make under $60,000 annually. Some states offer homeowners’ credit certificates to these people, who then pay their property taxes thanks to these certificates. All of these are welcome aid to those who are in low-income situations or those who have collateral, but still struggle wit the task of finding the money to pay back taxes.

If your main interest is information on tax fraud or any other, such as tax relief 2008, Tennessee extension bill property taxes or the expansion of the economy incentives for relief from taxes on income This article can be useful.

Reduction of sentence is another method of tax relief which you may qualify for, especially if their non-payment of taxes and the resulting sanctions were due to the events you had no power. These are usually in the form of serious illness, death, natural disasters such as earthquakes, floods and fires; On the other hand, problems such as poor reception of tax advice or even errors made by the IRS and the sudden shift in tax laws.

Benefits under the Law include the elimination of tax liabilities, reducing tax rates on income, capital gains and dividend income, the simplification of the rules of retirement plan and pension plans, increased credit for dependent children and child care, the depreciation of assets, and more.

Tax relief can also be beneficial through checks mailed to taxpayers by federal or state tax authorities to reduce the burden of taxes. These controls can also be in the form of refund checks received from the tax authorities of tax paid in advance when it was found that excess taxes paid by the taxpayer after calculating the tax assessment of the current or previous assessment of the year.

You must remember that if this article has not provided an accurate tax information scam, you can use any of the major Internet search engines, like Ask com, to find the exact tax relief scam information you need.

This form of tax relief is available only to the original purchaser of the hybrids or advanced lean burn technology, vehicle. However, if the vehicle is leased the credit is passed to the leasing company. Once 60,000 vehicles in particular have been sold, will benefit from this tax relief will be reduced and eventually be eliminated. Its full tax credit may be claimed until the end of the 3rd month after the quarter in which the manufacturer sells its 60000th vehicle.

Tax time is one of those terrible events in the U.S. for many people each year. If you have fallen behind in their taxes will have to find some relief from the tax debt. One of the keys to the alleviation of the tax debt is to act quickly before the cargo is so large that it can not escape. This article was hanging in some potential for debt relief tax solutions for you.

While the recruitment of tax relief aid can not be cheap, not realizing that letting his tax debt with the growth of all sanctions and the imminent rise in interest actually cost much more and be harder to solve, even for a longer time.

For your information, we found that many people who were searching for a tax scam also searched online for Indiana property tax relief, state tax forms, and even Wisconsin property tax relief.

In face of tighter enforcement measures that the IRS is expected to use to strengthen its tax collection and monitoring policies, tax problems have become, if possibly, more stressful to deal with. Among truck drivers, in particular, the need to immediately address tax problems is more pressing than it has been in previous years. However, given the present economic climate, dealing with tax problems can prove hard for truckers, truck drivers. This is where tax relief for truck drivers plays an integral role. The IRS provides tax relief for truckers, provided that they certain law mandated qualifications and criteria.

Available relief for drivers

Truck drivers have at their disposal the same kind of tax relief available to all citizens of the United States. The first of these relief services is back tax return assistance. Back taxes are taxes accumulated from years of unfiled returns, delayed filings, or missing records. If left unattended, back taxes can cause major problems for a truck driver because he or she is likely to be considered evading his or her responsibilities. If you have a good amount of unfiled returns in your hands, you can set your record straight through services offering tax relief for truckers. Our firm, Mike Habib, EA, offer such service basically helps our clients to reconstruct tax records and prepare past due tax returns.

Another tax relief for truck drivers is installment agreement, which can be especially helpful for truckers with excessive tax debts. This type of tax relief service would allow a truck driver who is indebted with the IRS to pay his or her owed taxes through small installment payments. The amount to be paid for each installment and the repayment schedule would be based on the truck driver’s current financial status. This setup, along with the amount and schedule, can be negotiated with the IRS given that the truck driver meets certain qualifications. If you are yet unfamiliar with this kind of tax relief for truck drivers, you can retain our tax professional services to help you explore it.

Truck drivers also have the option to get relief through offer in compromise or OIC. This is perhaps, the best kind of tax relief for truckers since it would allow them to pay less than what they actually owe the IRS in tax debt and back taxes. On the same note, OIC comes with the strictest qualifications, rules, and guidelines to ensure that only qualified truck drivers and tax payers in general are able to avail of it.

Related to offer in compromise is a tax problem resolution called penalty abatement. This is actually a step above OIC in that it opens the possibility of eliminating penalties on the tax debt if the taxpayer is able to present reasonable and justifiable cause explaining why he or she accumulated the tax debt in the first place. Some examples of reasonable and justifiable cause accepted by the IRS are family sickness, natural disasters, and other situations that are beyond a person’s control.

Regardless of the type of relief for truckers that you can avail of, what is important is that you try and avail of one. Tax problems are hard burdens to live with. They are among the many number of things that you cannot live normally with. By seeking tax relief, you free yourself of tons of headache and worries. More importantly, you would no longer fear the IRS tax letters coming in, the phone ringing, or the doorbell ringing.

Knowing the right one

Before you seek tax help for truck drivers, however, you must know what kind to of option is best suited for your situation. This is because every kind of financial situation requires a different approach in the same way that each kind of tax relief approach comes with requires different qualifications. It is best to present your case to a tax professional so he or she can advice you on which tax relief is most suitable to your position.

Mike Habib is an IRS licensed Enrolled Agent who concentrates his tax practice on helping individuals and businesses solve their IRS tax problems. Mike has over 16 years experience in taxation and financial advisory to individuals, small businesses and fortune 500 companies.

The tax relief industry has experienced significant change over the past several years. As the economy worsened and Americans faced increased financial pressures, many people and businesses sought relief from the strain by not paying their taxes. In response, an enormous number of tax companies started sprouting up to absorb the unprecedented demand for tax services. Tax gurus on late-night TV and radio advertise, they’ll “settle your tax debt for pennies on the dollar.” Despite being tax geeks ourselves, we couldn’t make sense of which tax companies are good and which are bad.

Tax Relief Firms – Choosing the Right One For You

Under the broad umbrella of “tax relief firms,” there are three types of professional firms: Law firms, CPA Firms, and Hybrids. The first two types are self-explanatory, and since there’s really no industry-standard name for the latter category, calling them a “hybrid” is probably acceptable. But which of the three categories is right for you?

Law Firms

As you know, a law firm is made up of ONLY lawyers. A law firm may employ assistants, like paralegals, but a tax attorney is ALWAYS the person ultimately responsible for any tax work performed. All tax attorneys employed by a law firm are subject to the ethics rules and disciplinary action of their state bar. A tax attorney may generally represent any client in any state on any U.S. federal income tax matter.

The pros to employing a law firm are that you can feel comfortable that (i) an attorney is the one ultimately responsible for your tax matter, (ii) you have a clear method to file grievances (i.e., with the sate bar) if the attorney screws up, and (iii) lawyers are subject to strict ethics rules so they should work according to the highest of standards. The cons are that law firms generally are more expensive than the other two types of tax firms. Additionally, some law firms (or attorneys) do not focus solely (or even primarily) on tax related work, so they may lack some of the skill and expertise needed to fight the IRS. Just ask your attorney what other types of work he or she performs, and that will give you a sense of whether tax (and specifically, tax relief) is his or her specialty.

CPA Firms

At CPA firms, you will obviously find CPAs (i.e., certified accountants), but you may also find tax attorneys. Like law firms, it’s nice to know that at CPA firms, there is a professional behind the scenes who is ultimately responsible for any tax work performed on your behalf. The pros and cons of CPA firms are similar to those of law firms, except the method of reporting grievances with CPAs isn’t as well defined (but exists nonetheless) as it is for attorneys. CPA firms are generally a little less expensive than law firms.

“Hybrid Firms”

The hybrid firms include tax relief firms that are not law firms or CPA firms. Tax relief firms in this category employ a mix of tax professionals, including tax attorneys, CPAs, and so-called “Enrolled Agents.” Enrolled Agents are tax professionals certified by the IRS. They are neither attorneys nor CPAs, but are tax professionals that the IRS has concluded (either through examination or experience) that they are qualified to represent taxpayers before the IRS.

Many tax relief firms fit in the “hybrid” category. Lots of the tax firms that advertise on the internet and radio are made up of tax attorneys, CPAs and enrolled agents and thus are hybrid tax relief firms. The pros are that these companies generally charge less for tax relief work and are very good at performing tax services and working with IRS since tax controversy work is their specialty. The cons are that unlike law firms and CPA firms, these hybrid firms are largely unregulated, so there’s no clear channel (like, for example, the state bar for attorneys) to file grievances. Since they are unregulated, many of the hybrid firms are just plain bad and if they rip a client off, there’s little recourse, except the traditional routes of going to the BBB or other quasi-regulatory bodies.

There are various new tax relief credits and deductions that are available to small businesses. These are an ideal opportunity for any small business to reduce their tax liabilities. Some of these available tax relief options are explained here:

Small Business Healthcare Tax Relief

One of the new and major tax credits is the Small Business Healthcare Tax Relief. This tax credit is given to small businesses and small charities that employ a fair number of low income earning employees. The credit allows for such qualifying organizations to receive a tax break for the premiums that they have paid for their employee’s Healthcare. This tax credit runs from 2010 to 2013. The qualifying tax credit amount is a maximum of 35% of the premiums paid in a tax year for small businesses and a maximum of 25% for qualifying tax exempt nonprofit organizations. However, for the two qualifying years after 2013, the tax credit will be a maximum of 35% for qualifying nonprofit organizations and 50% for qualifying small business. The credit is set such that the smaller businesses and nonprofits with less than 10 full time employees and paying a wage-average of $25,000.00 annually get the greatest tax credit (the credit reduces for larger businesses and nonprofit organizations). For a small business or nonprofit organizations to qualify for this Healthcare tax credit, they must have a maximum of 24 full time employees and must also have a maximum annual average wage of $49,999.00.

Tax Deduction for Healthcare Cost of Self-Employed Individuals

The tax deduction for self-employed individuals who pay for their own Healthcare is another new tax relief that takes effect in 2011. The tax relief is part of the Small Business Jobs Act of 2010. Under this relief, the self-employed individual may reduce the taxable income for a given tax year with the premiums paid for his or her healthcare. The Healthcare coverage needs to be registered under the business name of the self-employed.

Tax Relief on Capital Expenditure for Small Businesses

This tax relief enables small businesses to claim the expense costs incurred in purchasing certain business assets under IRS Schedule 179-Property. Ideally, such expenses should be depreciated over several years. However, with this tax relief, a business can claim expenses up to $500,000.00 of the first $2 million of the cost of the property. The tax relief applies for both tax years 2010 and 2011. Come 2012, the allowed maximum that a business can deduct for capital expenditure will come down to $125,000.00.

Bonus Depreciation Tax Relief

Besides the 179-property relief, a small business can also deduct a bonus depreciation of 100% of the cost of qualifying assets if such assets were purchased after September 8, 2010 and put into use before January 1, 2011

Limitation on Car Expenditure

For business cars, there is a cap on the total amount of deductions that you can place both under the 179- Property tax relief and the bonus depreciation relief. For passenger cars, the total amount of deductions you can make in the first year of purchase is $11,060.00 and if you did not deduct the bonus depreciation relief, it goes down to $3,060.00. For trucks and vans, the maximum amount that you can deduct after making the bonus depreciation deduction is $11,160.00 and if you did not take the bonus depreciation deduction, you can deduct a maximum of $3,160.00 on the first year of purchase.