Tax Write-Off
#1
Tax Write-Off
is the tax break for the cayenne-toureg still available? i read someplace that the senate finance committee was going to close the loop hole. if it is still available, how does it work-how much would you save?
#2
Yep, it's still available. The Senate Finance committee didn't recommend repealing it.
If you have a business purpose you can write off up to $100K in the year of acquisition. This applies to all vehicles which have a gross vehicle weight over 6000lbs. Gross vehicle weight includes weight of the vehicle, luggage and passengers.
Consult your tax advisor to determine if you qualify.
If you have a business purpose you can write off up to $100K in the year of acquisition. This applies to all vehicles which have a gross vehicle weight over 6000lbs. Gross vehicle weight includes weight of the vehicle, luggage and passengers.
Consult your tax advisor to determine if you qualify.
#4
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% of ALLOWABLE business miles / total miles = % of vehicle price that can be depreciated via Sched. 179. Your business income must exceed this amount to take the deduction. You ara also allowed to write off expenses associated with running the vehicle including interest on the loan to buy it.
#5
let me as then-if i purchased a toureg for $42,000, or a cayenne for $56000, just how much could i write off-in other words, how much tax would i save. i am a doctor, and can use it for business. if i already have my business pay for a percentage of my carrera, can it also pay for the suv?
#6
Intermediate
Originally posted by docjackson1
let me as then-if i purchased a toureg for $42,000, or a cayenne for $56000, just how much could i write off-in other words, how much tax would i save. i am a doctor, and can use it for business. if i already have my business pay for a percentage of my carrera, can it also pay for the suv?
let me as then-if i purchased a toureg for $42,000, or a cayenne for $56000, just how much could i write off-in other words, how much tax would i save. i am a doctor, and can use it for business. if i already have my business pay for a percentage of my carrera, can it also pay for the suv?
HTH,
#7
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However, it is impossible to use it 100% for business.
Commuter mileage is not deductible.
Also, your first stop of the trip is not deductible.
So, if your first stop was 1/10 of a mile down the road and then you drove another 500 miles...you could deduct almost all...but not 100%.
Commuter mileage is not deductible.
Also, your first stop of the trip is not deductible.
So, if your first stop was 1/10 of a mile down the road and then you drove another 500 miles...you could deduct almost all...but not 100%.
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#9
Intermediate
Originally posted by DC from Cape Cod
However, it is impossible to use it 100% for business.
Commuter mileage is not deductible.
Also, your first stop of the trip is not deductible.
So, if your first stop was 1/10 of a mile down the road and then you drove another 500 miles...you could deduct almost all...but not 100%.
However, it is impossible to use it 100% for business.
Commuter mileage is not deductible.
Also, your first stop of the trip is not deductible.
So, if your first stop was 1/10 of a mile down the road and then you drove another 500 miles...you could deduct almost all...but not 100%.
You do need to have another car for personal miles.
#11
Intermediate
Originally posted by docjackson1
can you write off 2 cars for business, if you use them both?
can you write off 2 cars for business, if you use them both?
At least 50% of the miles on each car must be business miles.
The deduction is, of course, proportional to the percentage.
#13
if i already write off a piece of my tt for my practice, can i also write off the suv, if i use them both for business?
An even better answer though is to pose these questions to a person who is prepared to defend the answers before a tax auditor, like the person or firm that does your tax return.
#14
good point. the main reason that i bring this up is that i presently have an 02 freelander. i read about this deduction and was wondering if it makes sense financially to take advantage of the suv deduction and flip the freelander for the toureg/cayenne, which qualifies under the weight limit of 6000 lb gross.
#15
It makes sense to flip the Freelander for a Cayenne..even without a tax deduction.
However, on another point it seems to me that the tax advantage on the TT is severely limited because of luxury car limitations. So , intuitively, you would be better off getting of a Cayenne (which is not subject to the same limitations) and maximizing the benefit to yourself.
E.G. The max deduction on the TT may be $7K per year and the max deduction on the Cayenne is $100K. If you look at in this light the Cayenne may actually subsidize the costs of the TT, even if you lose the deductibility of the the TT.
However, on another point it seems to me that the tax advantage on the TT is severely limited because of luxury car limitations. So , intuitively, you would be better off getting of a Cayenne (which is not subject to the same limitations) and maximizing the benefit to yourself.
E.G. The max deduction on the TT may be $7K per year and the max deduction on the Cayenne is $100K. If you look at in this light the Cayenne may actually subsidize the costs of the TT, even if you lose the deductibility of the the TT.