IRS section 179...SUV tax deduction
04-16-2003, 06:00 AM
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IRS section 179...SUV tax deduction
Hi...
I'm wondering if the Cayenne qualifies for the SUV tax deduction (IRS Section 179).
Also, does anyone know the details of this tax code. For example, how many % of business use do I need to use this car to qualify for the tax rebate? Someone told me as little as 50% would qualify and some say 100%.
Thanks in advance!
Chris
--------------
'01 996 TT
I'm wondering if the Cayenne qualifies for the SUV tax deduction (IRS Section 179).
Also, does anyone know the details of this tax code. For example, how many % of business use do I need to use this car to qualify for the tax rebate? Someone told me as little as 50% would qualify and some say 100%.
Thanks in advance!
Chris
--------------
'01 996 TT
04-16-2003, 04:39 PM
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Like all large SUVs (6000+ GVWR) it is classified as a truck for tax purposes. It then comes under special depreciation rules (not limited like cars) and is eligible for bonus depreciation as well.
For example, it can be depreciated over 5 years on a double declining balance (DDB) method, and you might be able to take an additional $25K in first year depreciation.
For legitimate business use this feature makes all large SUVs very cheap on an after tax basis. (e.g. Range Rover, Suburban etc).
And, I can't resist, adding ballast to the FX45 doesn't qualify it. So you really pay a premium for buying one of those.
For exact details consult you tax advisor. Don't broadcast the benefit too loudly, otherwise Congress is sure to eliminate it (already rumored).
For example, it can be depreciated over 5 years on a double declining balance (DDB) method, and you might be able to take an additional $25K in first year depreciation.
For legitimate business use this feature makes all large SUVs very cheap on an after tax basis. (e.g. Range Rover, Suburban etc).
And, I can't resist, adding ballast to the FX45 doesn't qualify it. So you really pay a premium for buying one of those.
For exact details consult you tax advisor. Don't broadcast the benefit too loudly, otherwise Congress is sure to eliminate it (already rumored).
04-18-2003, 12:03 AM
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From Autospies: Recalls and tax implications for 2003 Lexus GX470
So much for the tax deduction on this baby!
If you were beginning to think that only Mercedes, BMW and Porsche cars got recalled, think again.
The 2003 Lexus GX470 has alreadty had three recalls since its November 2002 introduction.
Here are the three items:
1. Possible air suspension pin problem
2. Middle seats latching problem
3. Improper GVWR rating sticker (Text from recall letter below)
CERTAIN SPORT UTILITY VEHICLES FAIL TO COMPLY WITH THE REQUIREMENTS OF PART 567, “CERTIFICATION.” THE INCORRECT GROSS VEHICLE WEIGHT RATING (GVWR) DATA WAS PRINTED ON THE CERTIFICATION REGULATION LABEL. THE GVWR IS INCORRECTLY REFLECTED ON THE LABEL AS 6,100 LBS. THE CORRECT GVWR SHOULD BE 6,000 LBS.
Consequence:
THE CERTIFICATION LABEL DOES NOT MEET THE INFORMATION REQUIREMENTS AS DESCRIBED IN THE REGULATIONS.
Remedy:
AS EACH LABEL IS VEHICLE IDENTIFICATION NUMBER SPECIFIC, OWNERS WILL BE REQUESTED TO CONTACT THEIR LOCAL LEXUS DEALER FIRST TO PLACE AN ORDER FOR THE CORRECTED LABEL. ONCE THE LABEL HAS ARRIVED AT THE DEALERSHIP, THE OWNER WILL BE CONTACTED FOR LABEL REPLACEMENT. OWNER NOTIFICATION IS EXPECTED TO BEGIN DURING APRIL 2003. OWNERS WHO TAKE THEIR VEHICLES TO AN AUTHORIZED DEALER ON AN AGREED UPON SERVICE DATE AND DO NOT RECEIVE THE FREE REMEDY WITHIN A REASONABLE TIME SHOULD CONTACT LEXUS AT 1-800-255-3987.
Notes:
CUSTOMERS CAN ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION’S AUTO SAFETY HOTLINE AT 1-888-DASH-2-DOT (1-888-327-4236).
The third item has the most implications for most people because the GX470 no longer qualifies for the section 179 tax deduction.
Here's what Lexus is doing to compensate customers:
1. Lexus will reimburse additional state and local vehicle registration and title fees. They will also help you retitle the SUV.
2. They will give you a $1000 Visa Debit Card for Lexus services.
This is only good for GX 470s purchased after 12/31/2003.
AMAZING!
So much for the tax deduction on this baby!
If you were beginning to think that only Mercedes, BMW and Porsche cars got recalled, think again.
The 2003 Lexus GX470 has alreadty had three recalls since its November 2002 introduction.
Here are the three items:
1. Possible air suspension pin problem
2. Middle seats latching problem
3. Improper GVWR rating sticker (Text from recall letter below)
CERTAIN SPORT UTILITY VEHICLES FAIL TO COMPLY WITH THE REQUIREMENTS OF PART 567, “CERTIFICATION.” THE INCORRECT GROSS VEHICLE WEIGHT RATING (GVWR) DATA WAS PRINTED ON THE CERTIFICATION REGULATION LABEL. THE GVWR IS INCORRECTLY REFLECTED ON THE LABEL AS 6,100 LBS. THE CORRECT GVWR SHOULD BE 6,000 LBS.
Consequence:
THE CERTIFICATION LABEL DOES NOT MEET THE INFORMATION REQUIREMENTS AS DESCRIBED IN THE REGULATIONS.
Remedy:
AS EACH LABEL IS VEHICLE IDENTIFICATION NUMBER SPECIFIC, OWNERS WILL BE REQUESTED TO CONTACT THEIR LOCAL LEXUS DEALER FIRST TO PLACE AN ORDER FOR THE CORRECTED LABEL. ONCE THE LABEL HAS ARRIVED AT THE DEALERSHIP, THE OWNER WILL BE CONTACTED FOR LABEL REPLACEMENT. OWNER NOTIFICATION IS EXPECTED TO BEGIN DURING APRIL 2003. OWNERS WHO TAKE THEIR VEHICLES TO AN AUTHORIZED DEALER ON AN AGREED UPON SERVICE DATE AND DO NOT RECEIVE THE FREE REMEDY WITHIN A REASONABLE TIME SHOULD CONTACT LEXUS AT 1-800-255-3987.
Notes:
CUSTOMERS CAN ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION’S AUTO SAFETY HOTLINE AT 1-888-DASH-2-DOT (1-888-327-4236).
The third item has the most implications for most people because the GX470 no longer qualifies for the section 179 tax deduction.
Here's what Lexus is doing to compensate customers:
1. Lexus will reimburse additional state and local vehicle registration and title fees. They will also help you retitle the SUV.
2. They will give you a $1000 Visa Debit Card for Lexus services.
This is only good for GX 470s purchased after 12/31/2003.
AMAZING!
04-18-2003, 12:25 AM
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It would seem to me that those who purchased the Lexus with the expectation that it would meet the current tax laws will have a legitimate and reasonable claim, if the re-labelling really results in the vehicle not meeting the Section 179 requirements.
Further, I think Lexus (like any reputable manufacturer) will quickly step up and accept responsibilty, when the customer points it out.
Of course, like any manufacturer they will play dumb on the customer and hope they don't figure out exactly what they're entitled to.
The lawyers will have a field day with this one.
If it were me I would return the vehicle, except for the fact that I never would have bought it in the first place. I learned my lesson years ago!
Further, I think Lexus (like any reputable manufacturer) will quickly step up and accept responsibilty, when the customer points it out.
Of course, like any manufacturer they will play dumb on the customer and hope they don't figure out exactly what they're entitled to.
The lawyers will have a field day with this one.
If it were me I would return the vehicle, except for the fact that I never would have bought it in the first place. I learned my lesson years ago!
04-18-2003, 04:31 AM
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Looks like any business usage above 50% would qualify. I'm a doctor, so I guess I could say I need the Cayenne as an ambulance! Just seems too good to be true.
Chris
----------
'01 996 TT
Chris
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'01 996 TT
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04-18-2003, 12:02 PM
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It's a common practice for those who qualify. It's not too good to be true, but it might be too good to last.
Some see it as an abuse, and not what was originally intended under the tax law, (A loophole!).
Congress is tinkering!
Some see it as an abuse, and not what was originally intended under the tax law, (A loophole!).
Congress is tinkering!
07-22-2003, 11:26 AM
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how does the curb weight and GVWR differ?
the specs at porsche.com are around 5200 for the TT, but the door sticker says 6700 GVWR. i assume there's a difference, and the Section 179 focuses on GVWR rather than curb weight?
the specs at porsche.com are around 5200 for the TT, but the door sticker says 6700 GVWR. i assume there's a difference, and the Section 179 focuses on GVWR rather than curb weight?
