IRS section 179 and the X5

bjo · #1 07-28-2006, 01:55 PM

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

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blondboinsd · #2 07-28-2006, 01:56 PM

They closed that loophole a few years ago, you can still write off your lease payment thou. I wrote off my Range Rover this year but I couldn't write off 70% it was way less.

DINANM3 · #3 07-28-2006, 01:57 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

Yes you are correct and yes i am currently doing it. I get 100% deduction since its my only company car and i always use it for work. and its all legal

DINANM3 · #4 07-28-2006, 01:59 PM

Quote:

Originally Posted by blondboinsd

They closed that loophole a few years ago, you can still write off your lease payment thou. I wrote off my Range Rover this year but I couldn't write off 70% it was way less.

as of this april when i closed my 05 taxes that law was still on the books although back then i heard they were gonna change it soon for 06. As far as i know its still good for 06 but then again i havent checked into it since april. But i definately did it in 05.

blondboinsd · #5 07-28-2006, 02:00 PM

Hmm yeah I was pissed off but life goes on

DINANM3 · #6 07-28-2006, 02:06 PM

Quote:

Originally Posted by blondboinsd

Hmm yeah I was pissed off but life goes on

sorry but what were you pissed off about. Also what made you think that that law was changed a few years ago. Do you know for sure

blondboinsd · #7 07-28-2006, 02:10 PM

Well I knew about the loophole so thats why I got that car in the first place. Then I bought the supercharged version vs the HSE because I wanted the additional write off but I wasn't able to write that much off because my accountant said it was reduced.

DINANM3 · #8 07-28-2006, 02:13 PM

Quote:

Originally Posted by blondboinsd

Well I knew about the loophole so thats why I got that car in the first place. Then I bought the supercharged version vs the HSE because I wanted the additional write off but I wasn't able to write that much off because my accountant said it was reduced.

Oh. Yea that sucks. By the way 2 people i know own a SC RR sprt and one used to have a 4.4 and hates the RR and the other guy had a 4.6 and likes the RR but wishes he got a 4.8 instead. How do you like it?

blondboinsd · #9 07-28-2006, 02:15 PM

I don't have it anymore, when Chuck and I split a few weeks ago I left it with him because I put it in his name so I wasn't stuck with 2 cars in case something like this happened, It was ok, very luxurious, love the look, disgusting reliability, i'd give it 3 out of 5 stars, I DEF love the X5 and am happy to be back in it, don't miss the RR at all

x5GuyInLA · #10 07-28-2006, 02:21 PM

check with Phester, he's the tax guru here, but here is some info... http://www.selfemployedweb.com/suv-tax-deduction-4.htm

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