wds928

W signed the tax bill on Friday, 10/22/04, which became affective today, 10/23/04. Therefore a $95,000 TT placed in service by 10/22/04 and used more than 50% for trade or business use in 2004 qualifies for a full Section 179 deduction (provided there is sufficient income to absorb the deduction).

A $95,000 TT bought today and placed in service today, assuming 100% business use would get a $25,000 Sec. 179 deduction, $35,000 bonus depreciation (50% of the remainder plus $1,312.50 of regular depreciation (mid-quarter convention), for a first year total of $61,312.50. Still not a bad tax deduction.

Results may vary. If the qualified business use is there, you can pretty much use varying combinations of Section 179, 50% or 40% bonus and regular depreciation to achieve the results you want. Please consult a qualified tax advisor.

WDS928, CPA

Torags

WDS928, thanks Bill. BTW is the 6,000 lb requirement still in effect?

Colm: I'm a little late in my response - you are absolutely right; but being in the RE business differal is generally used for cap gains avoidance & not necessarily cash flow purposes (it's our matra).

wds928

Torags:

Yes, the more than 6,000 pound gross vehicle weight rating is still in effect, which is the key to getting even a $25,000 or $100,000 Section 179 deduction for the Cayenne's in the first place. Remember, this is not the empty, "curb weight", but the manufacturer's gross weight rating.

Torags

So I guess my brides new CLK won't work... ;-). Thanks again, good info.......

TheTKDKid

I took delivery of mine on 10/22/04. Is there some special way the vehicle has to be titled to qualify for the deduction?

GM Austin

No, but this is not the place for that question. You need to ask the person who does your taxes that question. There are many on this forum who are well informed on depreciation deductions, including accelerated depreciation under section 179, and there are also some who are not well informed, but answer anyway. Go to someone you KNOW is well informed AND who also knows your tax situation. If you do your own taxes, go to www.irs.gov and make yourself well informed.

DC from Cape Cod

Note that although you must use the vehicle for allowable business use more than 50% of the miles to qualify....you only get to deduct a % of the price that correlates to the % of miles used for business.

You do NOT deduct 100% of the entire car if you use it 51% for business...you would only get to deduct 51%.

Absolutely contact your tax person - don't believe anything you read on the internet. We could all be 55 year old plumbers from Chicago pretending to be 19 year old nymphos from South Beach.

Alfie

DC, you mean you aren't a 55 yo plumber or a 19yo nympho?

DC from Cape Cod

LOL, while I aspire to be a 19 yo nympho, I am actually closer to being a 55 yo plumber....but I haven't given up yet.

Torags

I'm sure if you titled to D. Chaney, you might get additional consideration. Gotta go, I'm searching for that nympho on google (but I'm not quite sure what I should do with her.)

Control It

I do know that the vehicle must be insured and registered in the company's name. THis is according to my CPA. THis is assuming you have a corporation...

DC from Cape Cod

That is not the case for a self-employed individual.