Tech Package Production Delay

[Armand]

Originally Posted by pgaX5

I was doing some research and it doesn't appear that the Section 179 Deduction changes taking place in 2010 would make a difference here...can anyone confirm that? It doesn't matter to me whether I claim the vehicle in 2009 or 2010 if that is correct. If I'm misinterpreting what I've read, then I would have a reason to find a vehicle prior to 1/01/10.

My accountant had to research this himself and I wasn't content to that. I called IRS myself to confirm. The IRS pubs are very confusing. The best thing is just to call them up.

1. The accelerated depreciation law which allows you to accelerate the depreciation of a vehicle weighing more than 6000 lb and less than 14000 lb is in the law. You can claim it this year or next unless the law changes (unlikely.) This allows you to deduct about $11,000 in the first year of service. Without this law, you are limited to just under $4000 for the first year and much less in subsequent years.

2. The part that is in the Obama economic incentive package is a deduction equal to 50% of basis or up to $25,000 in the first year of service (only covers vehicles weighing between 6000 lb & 14000 lb). This is only confirmed for 2009. You get it in addition to #1. This part will go away in 2010 unless it is renewed. No one knows if it will.