- Nov 19, 2001
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Originally posted by: Nuriko
Originally posted by: Zebo
2) This is the final year of the SUV Business Use Tax loophole. For vehicles purchased this year and over 6000 pounds gross weight, this is the last year you can expense, as business Section 179 expense, the total cost (up to $100K) of the vehicle. the weight and percentage business use is key, but it is a great way of reducing your Schedule C business income if you did it.
Loophole? You make it sound so sisnister lol.
Anyway is'nt the new limit 8800GVW?
Actually, from my understanding, this isn't the last year; I think 2009 will be the last year. However, as of Octobter 22, 2004, the max. 179 deduction for SUVs weighing 6k-14k lbs gvw is 25k (you can still claim up to the full 102k for trucks and other equipment). If you bought and put into service (it has to be at least 50% used for business and that percentage is prorated against the total cost of the suv the SUV) before that day, you can claim up to the full 102k, as well as bonus depreciation.
Example: if you bought a hummer for 60k and only use it 60% for business, then you could immediately take 36k 179 depreciation, if it was bought before 10/22/04. However, the 179 depreciation starts to phase out if you bought over 410k of qualifying property (one example is tangible personal property such as machines, equipment, furniture).
It is the last year as it relates to the amount that you can deduct. I should have made it more clear.