IRS section 179 and the X5 - Page 2

bjo · #11 07-28-2006, 02:22 PM

Thanks for the info guy
.
DINANM3, nice stable of cars you have there.

I have tried looking up the current info on the IRS website, but reading though that crap gives me a headache. I guess that's why I am not a CPA. In any case, I guess I need to find out from my CPA if it is still a valid loophole.

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rangerfan · #12 07-28-2006, 02:31 PM

The loophole was drasktically reduced last year. Search the forums. It was discussed at some point.

Roc3b · #13 07-28-2006, 02:35 PM

The law was changed in 05, the wieght was increased. It was really designed to aid construction firms and the like. It was not intended for yuppies to buy big SUVs and drive in it all day and night and call it a car for work. At least that was the verbage from the senator that proposed the bill changing the law.

Phester · #14 07-28-2006, 02:54 PM

Quote:

Originally Posted by bjo

All, I am a self-employed consultant whose main place of business is his home. My wife and I are considering an X5 and I understand that I maybe able to write off a nice portion of the cost since the GWVR is 6000lbs. Since it will be used 70% of the time for business, I understand that I will be able to write off 70% of the max ($25k) deduction? Is this correct? Are any of you all doing this? Thanks
-BJ

The max amount of the cost of an SUV that may be expensed under Sec. 179 if the SUV is exempt from the luxury car caps (e.g., is built on a truck chassis and has a GVWR in excess of 6k lbs) is limited to $25k (or the business use % of) placed in service after 10/22/04.

bjo · #15 07-28-2006, 03:12 PM

Quote:

Originally Posted by Phester

The max amount of the cost of an SUV that may be expensed under Sec. 179 if the SUV is exempt from the luxury car caps (e.g., is built on a truck chassis and has a GVWR in excess of 6k lbs) is limited to $25k (or the business use % of) placed in service after 10/22/04.

So i take that as a NO on th X5?

soccerjunky · #16 07-28-2006, 04:35 PM

u can still use the x5 as a business vehicle and take the one time deduction of 25k..(or 70% of that in u're case) Back as recent as 03 tax year u could take up to a 100k one time deduction...(on a side note a pick up with no back seat still qualifys for the 100k deduction...Anyways needless to say i've had 3 business vehicles in the past 4 years..lol.. my lastest is the srt8gc a definite keeper...

Besides i used to do my own taxes when i was w2 but i don't see how one can once self employed or s-corp(payroll,benefit plans,expenses,capital gains,futa, state unemployment) so just ask u're accountant.. Once u become self employed i think u're accountant truly does save u money by catching u're mistakes..

Also if u only claim that u're car is 70% business use then just buy a new business vehicle next year and claim 100% on that vehicle and retire u're current business vehicle to personal use... if u're gonna claim 100% business use then u really need a back up car but u might as well make u're back up car u're old business car...there is no limit on taking a 179 business vehicle deduction each year...again consult u're accountant

On u're taxes u can't really cheat on u're income but u can sure as hell maximise u're expenses-travel, insurance etc ,

Also u need to find an accountant that u're comfortable with...

AutoXer · #17 07-28-2006, 11:19 PM

Quote:

Originally Posted by bjo

So i take that as a NO on th X5?

No, that's a yes. You can take the 179 deduction in your case up to 70% of $25k. I was praying that my X5 would come in before 10/22/04 so I can write it off. The dealer called on 10/20 and I told her I am going to be there in 20 minutes to pick it up. Hallelujah!

The other part of this that no one talks about is that yes, you can take the deduction the first year, but that also means no more deduction for the life of the car except for normal operating costs. And when you sell the car, you will realize a gain because your basis is zero!

JonK · #18 07-28-2006, 11:40 PM

Quote:

Originally Posted by Phester

The max amount of the cost of an SUV that may be expensed under Sec. 179 if the SUV is exempt from the luxury car caps (e.g., is built on a truck chassis and has a GVWR in excess of 6k lbs) is limited to $25k (or the business use % of) placed in service after 10/22/04.

Phester, you are correct, sir. It used to be $100k, I think, and it was originally designed for farmers not yuppies.

Quote:

Originally Posted by blondboinsd

I don't have it anymore, when Chuck and I split a few weeks ago ...

Ryan, I am truly sorry to hear about your misfortune. Did you have to have your marriage liscence annulled, assuming state of Hawaii allowed you to have it to begin with?

Unlike California, we have community property for a married couple in CA, in Hawaii I heard it is different. Do you need a divorce lawyer?
I wish you well.

blondboinsd · #19 07-29-2006, 02:20 AM

Quote:

Originally Posted by JonK

Phester, you are correct, sir. It used to be $100k, I think, and it was originally designed for farmers not yuppies.

Ryan, I am truly sorry to hear about your misfortune. Did you have to have your marriage liscence annulled, assuming state of Hawaii allowed you to have it to begin with?

Unlike California, we have community property for a married couple in CA, in Hawaii I heard it is different. Do you need a divorce lawyer?
I wish you well.

Thats very sweet of you thank you, actually I didn't do the hawaii thing, I wanted the ceramony for personal happiness, the only thing we did was take what was ours (X5, first condo to me and rr and new condo to him) and we did have power of attorney which has already been ended.

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