SUV vs sedan tax deduction for business?
11-16-2004, 09:10 AM
#1
SUV vs sedan tax deduction for business?
Hi,
My accountant has me a bit confused about the exiting SUV tax deduction.
Does anyone know just exactly how it's any different than the regular deduction you can take for a sedan used for business?
Thanks!
My accountant has me a bit confused about the exiting SUV tax deduction.
Does anyone know just exactly how it's any different than the regular deduction you can take for a sedan used for business?
Thanks!
11-16-2004, 07:48 PM
#2
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Here are my 2 cents:
A SUV with a GVWR in excess of 6k pounds qualifies for a 5 year depreciation schedule, a sedan does not (up to 10 years or more depending on car type).
Until recently, a SUV (over 6k pounds) could be depreciated in one year (up to $100k). The law changed last month and although there are some other tax incentives, the $100k deduction that applied to certain SUVs is now gone.
A SUV with a GVWR in excess of 6k pounds qualifies for a 5 year depreciation schedule, a sedan does not (up to 10 years or more depending on car type).
Until recently, a SUV (over 6k pounds) could be depreciated in one year (up to $100k). The law changed last month and although there are some other tax incentives, the $100k deduction that applied to certain SUVs is now gone.
11-16-2004, 09:08 PM
#4
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The bill was signed into law Friday, October 22. I managed to get me a Toyota LC the 21st (I got real lucky).
Even though the law changed, certain tax incentives still remain. Check with your accountant (mention Section 179 of the tax code).
Even though the law changed, certain tax incentives still remain. Check with your accountant (mention Section 179 of the tax code).
11-27-2004, 11:01 PM
#5
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Originally Posted by nicoff
Here are my 2 cents:
A SUV with a GVWR in excess of 6k pounds qualifies for a 5 year depreciation schedule, a sedan does not (up to 10 years or more depending on car type).
Until recently, a SUV (over 6k pounds) could be depreciated in one year (up to $100k). The law changed last month and although there are some other tax incentives, the $100k deduction that applied to certain SUVs is now gone.
A SUV with a GVWR in excess of 6k pounds qualifies for a 5 year depreciation schedule, a sedan does not (up to 10 years or more depending on car type).
Until recently, a SUV (over 6k pounds) could be depreciated in one year (up to $100k). The law changed last month and although there are some other tax incentives, the $100k deduction that applied to certain SUVs is now gone.
The 100k cap remains, but a carve out in the recent legislation reduced it to 25k for SUVs. But, it's not all bad:
Until the end of the year, a bonus depreciation is available at 12.5k, along with a standard depreciation of 2.5k. So, that's a total of 40k in deprepreciation/expense in 2004 if you buy by the end of the year. Depending on your marginal tax bracket, that'll roughly save you 13k to 14k in taxes.
I'm sorting through my 6,000lb+ GVWR SUV choices as I write this, after having spent half days in the Land Rover LR3, Lexus GX470, and the Cayenne Turbo (can you say YeeeeeHaaaa?). The Turbo may prove too rich for my blood (I'd like to buy the car cash, and the Turbo would have to be partially financed), and have yet to drive the S. I'm hoping the S lights my fire (well, my wife's). Should know next week.
Cheers.
12-12-2004, 12:54 PM
#6
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Jeff,
I just looked at the LR3 online and have not seen it in person. I was leaning toward the GX470. What are your feelings toward both trucks. I must admit I like the fact that the lexus drives more like a car. I have a navigator now and it is a beast. Is is really true that I could take a 40k write off this year?
Thanks in advance for your help
Joel
I just looked at the LR3 online and have not seen it in person. I was leaning toward the GX470. What are your feelings toward both trucks. I must admit I like the fact that the lexus drives more like a car. I have a navigator now and it is a beast. Is is really true that I could take a 40k write off this year?
Thanks in advance for your help
Joel
