It also served to do just the opposite of what our domestic car companies needed. It kept them on the big beast SUV mode when they really needed to downshift fast. Legislation intended to help them might have for a few quarters but actually hurt them bad. Myopic societial stupidity at its zenith.
SUV Tax Changes Before Congress |
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SUV Tax Deduction 2005 _ The Latest Info SUV Tax Deduction Update - SUV TAX DEDUCTION LIST American Jobs Creation Act 2004 Tax Deductible SUV Section 179-SUV Tax Deduction SUV Tax Deduction - Section 179 Pitfalls SUV TAX Loophole :2005 Tax Changes Turbo Tax - Basic Overview Tax Payment Options Cut 2004 Taxes Which Tax Form? The Basics Explained 2006 Tax Tips Disaster/Theft Loss Good Tax News Charitable Donations 2006 IRS FreeFile '06 SUV TAX DEDUCTION LIST S Corp vs. LLC - The Basics Explained Self Employed 401k - The Basics Explained 10/23/2004 Update - This bill was signed with little fanfare on 10/22/2004. Details on the entire bill are HERE. For details on how the SUV TAX Deduction has changed, read this page. There are still attractive "bonus" features in effect for pickups and some SUV's. Read Here 10/15/2004 UPDATE- This Bill is now on the President's desk to be signed. President Bush is expected to sign into law this week or early next week a rollback of the controversial loophole, which allowed hefty federal tax breaks for business owners buying large SUVs and heavy-duty trucks for work use. The change, which will take effect immediately, is part of a massive corporate tax-break bill, topping 600 pages, passed by Congress. More Here By Andy Jones Changes to Section 179 last year, commonly called the SUV Tax Deduction, expanded this popular tax break from $25,000 to $100,000 and lifted depreciation schedules. This combination of factors effectively allows anyone who uses a vehicle in their business at least 50% of the time to buy the biggest and most expensive SUV and write it off in one year. Here is the SUV Tax Deduction - Vehicle List. This created a huge incentive for anyone running their own business to purchase that luxury Escalade or BMW X5 and enjoy a hefty tax advantage for 2004.
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Originally intended to help the self employed ranchers, farmers and contractors purchase that
heavy pick up truck or van necessary for their business, the SUV Tax Loophole was quickly exploited by accountants, lawyers and doctors. Car dealers
actively used the SUV Tax Deduction to close the sale and it caused a boom in luxury SUV sales. The original SUV Tax Loophole, which has certain
restrictions including gross vehicle weight restrictions was set to
expire at the end of 2005.
Knowing the inequitable tax situation most small business owners and entrepreneurs find themselves in, we recommend taking advantage of each and every tax break to the fullest extent of the law. The SUV Tax Deduction quickly raised the ire of every tax fairness, environmental and
consumer group in the country. They were infuriated that white collar professionals were buying the biggest and most luxurious SUVs on the market with
price tags well over $50,000 in many cases.... and then writing them off. Critics also were quick to criticize the tax break as an excessive benefit
for the wealthy.
To qualify for the deduction (Section 179 of the tax code), an SUV or light truck must have a gross weight of at least 6,000 pounds. This is the vehicle weight plus maximum payload and also is referred to as gross vehicle weight rating or GVWR. Before buying any vehicle for your business, always verify the GVWR for yourself. It usually is found on a label attached to the inside edge of the driver's side door.
The the deduction is limited to $100,000 or your overall business income, whichever is less. Also, to get the tax break you must use the vehicle more than 50 percent for business. |
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