Business deductions for SUVs

[Armand]

I have been researching this for a while... talking to my accountant and IRS. There is no 100% certainty here but it is highly likely that the exception for heavy SUVs (over 6000 lb) is still valid for 2009 but will most probably go away in 2010. We are talking about a huge difference - from $25000 to about $4000. If you are planning on buying an x5 and you want to use it for business (more than 50% of time,) it is well worth looking into this because you can expense some where around $30K or more (depending on % business use and cost of vehicle) if you put the vehicle into service before 12/31. If anyone has new info on this, please share.

The one thing to remember is that heavy SUVs over 6000 lb are not classified as cars or regular trucks/vans/suvs. They are a special case. Some lobbyist was looking out for you

Sources:
Form 4562 instructions http://www.irs.gov/pub/irs-pdf/i4562.pdf
IRS note 9/31/09 Bonus Depreciation and Increased Section 179 Deduction under the American Recovery and Reinvestment Act

[socalrancher]

My accountant had a deduction of almost $36,000 on my new X5 of which $25,000 was just the purchase. This was claimed on my 2008 taxes filed this year. The only thing that you need to know is that you have to keep the car for 5 years or let your accountant know if you plan to sell it.

It apperently used to be up to $250,000 deduction and included Bentleys and the like. That was a few years back.

Also, don't consult me....consult your accountant or tax attorney.

[Armand]

Originally Posted by socalrancher

My accountant had a deduction of almost $36,000 on my new X5 of which $25,000 was just the purchase. This was claimed on my 2008 taxes filed this year. The only thing that you need to know is that you have to keep the car for 5 years or let your accountant know if you plan to sell it.

It apperently used to be up to $250,000 deduction and included Bentleys and the like. That was a few years back.

Also, don't consult me....consult your accountant or tax attorney.

Good for you! Just keep good records! the trouble is many accountants (mine among them) only catch up with new laws when they have to and that's usually too late for the current tax year. The special deduction has been extended to 2009 but there is no mention of 2010. As for me, I will probably miss the deadline. I am expecting early Jan delivery (according to CA) although the web site says at prep center. Hey, that's life.

[GPSnV1]

I've been using 179 since my first X (2004). A salesperson at the dealer gave me the tip.