Just picked up my 35d

[z2g]

Originally Posted by ABMW

What's going on is that they're incorrect. In California there are only paragraphs of tax code included in the education required to become an agent. In fact the entire class takes only 1-week.

The exam is a joke and could probably be passed by the majority of individuals on this board whom have a college degree and the slightest bit of financial sense. That's not to say it's not an honorable job, but don't take advice from your insurance agent as it relates to your tax liability, if you can avoid it.

In terms of your CPA, he or she is also wrong. The "Sports Utility Vehicle," which is an official definition used by the IRS must be 6,000 lbs GVWR or above to qualify for advanced depreciation, must be purchased for your business, and must be put in service by 12/31/09.

It's an area of tax code that the vast majority of tax payers do not qualify for, including most small business owners. If your CPA doesn't commonly confront this issue, there's every reason to believe he's in error. It doesn't make him a bad CPA, but it always helps to work with someone who is familiar with your particular line of work and the specific tax benefits that are available to you.

For example, in my line of work my car is literally a roaming office. I frequently drive 100 to 200 qualified business miles each day when things are "happening."

I'm not saying your CPA is wrong. He may be correct for your particular situation. But, if you meet certain criteria, as do I, you're eligible to take advantage of many new benefits that were introduced for the 2009 tax year.

The ability to deduct the sales tax on new car purchases, for example, is but one small incentive. For a $70k SUV in CA, where the tax rate is near 10% that adds up to $7,000 in deductions.

Anyway, good CPAs are hard to find, just as good doctors and good lawyers are. As well, unless you are an attorney or a very qualified CPA, you're not going to understand tax code well enough to determine much, when you find yourself in a complex tax situation. The publications are one thing, but researching tax court case law in order to determine, if you'll qualify for a particular deduction in the event of an audit is another issue all together.

Hence, while good CPAs and tax attorneys are not cheap, if you owe a high tax liability (over $75 to 100k per year) it can make a world of difference to seek the advice of a pro.

If purchasing an X5, makes sense, and you "in effect" get it half-way paid for, so much the better. You can even take a capital loss on your past vehicle if you've not fully depreciated it in the past, so trading it in for a loss or selling it for a loss can actually create a gain, in some cases.

Good luck and call your CPA! You have 8'ish days left!

:-)

Thanks for the info. I was reading over all the posts here regarding section 179. I think when I spoke to my cpa a few months back, she wasn't aware that our new car was going to qualify for that. I'll make sure to mention it to her. I did some quick research online on section 179 and I think it can pertain to my business.

Is there a time limit on when I have to file for the section 179 deduction or do I do it with my corporate taxes at the beginning of the year?