the cost of the X5 is the cost of the X5. What the deduction does is lower your tax basis so that your corporate/income taxes are taxed at a lower tax basis. Where it does come in handy tho, is if you own a business and take out a loan for say 5 years. You will only pay your payments, but you can take the deduction in the year you place the vehicle in service (essentially creating 25000 cash flow for your company).

Lets not sidetrack X5FXs thread, but in a nutshell, its not a loophole, but more about how business property can be "expensed" in the first year of ownership as opposed to 5 year depreciation. This is called the "section 179" deduction and must not exceed 108,000 for all equipment purchased for the business.

The old limit was the total of the expensing limit, 108000. The new limit is 25000. The vehicles must be over 6000gvwr (and used primarily for business) to apply for this expensing deduction under Section 179.

I am no tax expert (just a tax saavy business owner), and ultimately you need to talk to your tax accountants to see if this works for you.

Lets let this get back on track, and if you want, someone create a thread about Tax writeoffs either here or in the lounge, and i would be happy to participate.

Chris