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The CarGuy
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Posted: Thu Sep 10th, 2009 09:48 pm |
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If you are self-employed or own a business, it’s that time of year! If you want to get a HUGE tax credit on THIS YEAR’S return, you need to buy a full-size truck or SUV before the end of the year. PLUS, with the huge rebates and dirt-cheap gas, you win all the way around!
Vehicles and other equipment are traditionally large expenditures for any business enterprise. Typically, if business property has a useful life of more than one year, the cost must be spread across several tax years as depreciation with a portion of the cost deducted each year.
There is a way to immediately receive these income tax benefits in one tax year. The provisions of IRS code section 179 allow a sole proprietor, partnership, or corporation to fully expense tangible property in the year it is purchased.
The tax law changes over the past few years have made this option more appealing by dramatically increasing the amount that can be written off. These changes that were first made in 2003 and then extended in 2006 mean that businesses can write off more of their capital expenditures through 2009.
These changes mean that in 2009 a business can expense $250,000 capital expenditures up to an overall investment limit of $800,000. The only catch is that the expenditure has to be used greater than 50% for business use. Generally vehicles that weigh over 6,000 lbs qualify for this revision for immediate expensing. A special $25,000 limit applies to certain SUVs.
Here are some vehicles that for SURE qualify. There may be others. If you have a question about whether or not a vehicle qualifies and it is not on the list, let me know and I’ll check it for you!
Audi: Q7. BMW: X5 & X6. Buick: Enclave. Cadillac: Escalade & SRX. Chevy: Avalanche, Express van, all Silverados up to 3500, Suburban, Tahoe and 2009 Traverse. Chrysler: Aspen. Dodge: Dakota, Durango, and all Ram trucks. Ford: Econoline van, Expedition, all F150 through F350, some Explorers. GMC: Acadia, Savanna vans, all Sierra pickups up to 3500, all Yukons. Honda: Ridgeline and 2009 Pilot 4 wheel drive. Hummer: H2 and 2009 H3. Infiniti: QX56. Jeep: Commander and some Grand Cherokees. Land Rover: LR3, Range Rover & Rover Sport. Lexus: GX470 and LX570. Lincoln: Mark LT pickup & Navigator. Mazda: CX9 4 wheel and all-wheel drive. Mercedes: G, GL, M, and R Class including BlueTec diesels. Nissan: Armada, Pathfinder all-wheel drive, all Titans. Porsche: Cayenne. Saturn: Outlook. Toyota: Land Cruiser, Sequoia, all Tundras, some 4 wheel drive 4Runners. VW: Touraeg. Volvo: some XC90s.
Special thanks to Rusty Creech and Bill Caton, CPAs at Carroll, Caton & Greenway, PC for putting this in language everyone can understand. http://www.ccgcpa.com
Last edited on Thu Nov 5th, 2009 05:40 am by The CarGuy |
The CarGuy
Administrator
| Joined: | Tue Jun 21st, 2005 |
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| Posts: | 437 |
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Posted: Thu Nov 5th, 2009 05:40 am |
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