Section 179 tax credit...

EJCX5 · #1 12-09-2006, 03:04 PM

With the lease numbers so crazy I'm considering buying the vehicle (4.8 $71K). Has anyone used the section 179 tax credit for the X5 as it qualifies for the >6000# GVW number? My dealer recommended it as I will use the vehicle mainly for business. Any thoughts? The dealer was also able to give me 2500 off the MSRP with all my crying

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x5GuyInLA · #2 12-09-2006, 03:42 PM

here's some info...don't know if it's changed since 2005, so check with your cpa or phester.

chor · #3 12-09-2006, 04:11 PM

Quote:

Originally Posted by EJCX5

With the lease numbers so crazy I'm considering buying the vehicle (4.8 $71K). Has anyone used the section 179 tax credit for the X5 as it qualifies for the >6000# GVW number? My dealer recommended it as I will use the vehicle mainly for business. Any thoughts? The dealer was also able to give me 2500 off the MSRP with all my crying

According to section 179 for 2006, maximum you can claim for first year is 25,000. Too bad they changed from 100,000 to 25,000.

EJCX5 · #4 12-09-2006, 05:01 PM

Apparently you can also claim a depreciation for the "first year" which would add even more to this incentive before year end.

x5GuyInLA · #5 12-09-2006, 05:57 PM

yeah.....you can write off $25K, plus 30% of the remainder as bonus depreciation, then 20% of the rest as regular depreciation. But if I remember correctly what my accountant said, the some of the depreciation is recaptured if you sell the car before it's useful life (which I think is 5 years)

chor · #6 12-09-2006, 11:05 PM

I thought they removed the bonus depreciation which is 30%. I think you can still claim first year depreciation which is around $2000 plus the $25k...Let me know if I am wrong..

x5GuyInLA · #7 12-10-2006, 12:10 AM

maybe they did, i don't know........not sure if they've changed that tax law since they reduced it from $100k to $25k.

Poacher · #8 12-10-2006, 01:01 AM

Doesn't the weight need to be 6000 lbs or more for a section 179 credit?

EJCX5 · #9 12-10-2006, 01:38 AM

It's not the actual weight of the vehicle from my understanding...but the GVW needs to be >6000#. The X5 is on several lists of qualifying vehicles and the vehicle apparently has labeling to state it qualifies as per the dealer.

Quicksilver · #10 12-10-2006, 02:08 AM

My tax advisor told me the 179 works as long as you keep the vehicle for the length of time you specify it will be in service satisfying the business deduction. If you sell it or get rid of it early you must repay the balance of the deduction you took based on the time left.

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