Just picked up my 35d

[bigx5er]

Originally Posted by ABMW

Though, of note, your understanding of my tax situation is incorrect. Please reread it. I tried to make it pretty clear, as there are many others on this board who have specifically asked about Obama's "new for 2009" bonus accelerated depreciation scale, that is part of the economic stimulus package that was passed earlier this year.

If it were a matter of saving $13k, I would have purchased an M3, not a 6,000 GVWR SAV that is required to qualify for the bonus depreciation.

I get why you wanted to grab your tax savings, but I still find it odd that you didn't walk if the sales manager was that miserable. There are many dealers out there who are all anxious to sell X5s (if they have them).

Your math on the tax savings has me scratching my head like the previous poster. You are talking about a section 179 deduction. Or in other terms, accelerated depreciation. If you are having a good year, accelerated depreciation can be a good thing. But where I don't follow you is that deductions are against income, so even if you could deduct 100% of the purchase price, you would end up around 20K in a 36% bracket. To get to 45K would mean you were in a 80% bracket. The 6000 GVWR merely gets you by a federal limit on business car expenses, it has nothing to do with the current 2009 accelerated depreciation rules.

If there is some other creative way to handle the taxes, I would be interested to learn it. You would be best to site the rules online somewhere instead of just telling people to keep calling until they get the answer they want.

We look at section 179 each year. For you tax fans, here is a good reference:

Qualifying for the 2008 Section 179 Tax Deduction | Section179.org

I'm fine with calling a spade a spade, but something smells fishy here (and note I only have around 200 posts)