Every year we compile a list of eligible SUVs, trucks, and vans that should qualify for the Section 179 expense deduction based on the weight of the vehicle.
SUV Tax Deduction
Businesses can claim substantial deductions for heavy (over 6,000 pounds gross vehicle weight) SUVs and other vehicles used in business. For heavy SUVs, businesses can deduct up to $25,000 of the SUV’s cost in the year it is purchased. The rules that limit the amount of annual depreciation allowed on passenger automobiles do not apply to heavy SUVs. Meaning, the remaining cost of the vehicle can be written off over five years; potentially adding up to a substantial first-year deduction.
Section 179 Eligible Vehicle List 2014 by Self Employed Web Team (Friday, December 20th, 2013)
SUV Tax Deduction List 2013 by Self Employed Web Team (Thursday, December 12th, 2013)
The Section 179 “Hummer Loophole” has been greatly reduced over the years to prevent people writing off the purchases off gas guzzling suvs for personal use. Still there are vehicles available with gross weiight ratings above 6,000 pounds that qualify for expensing up to $25,000. To qualify, the vehicle must be financed, placed in service [...]
SUV Deduction in Brief by Andy Jones (Sunday, January 1st, 2006)
For heavy SUVs, businesses can deduct up to $25,000 of the SUVs cost in the year it is purchased. Also, the rules that limit the amount of annual depreciation allowed on passenger automobiles do not apply to heavy SUVs. Meaning, the remaining cost of the vehicle can be written off over five years; potentially adding up to a substantial first-year deduction.
SUV Tax Deduction for Dummies by Andy Jones (Wednesday, December 14th, 2005)
I have a small printing business, the income from this business is about 30K. At my other fulltime job i get paid 80K. My wife makes 40K. I do my taxes with all 3 incomes combined.
SUV Tax Deduction 2005 by Chris Bird (Friday, September 2nd, 2005)
In the eyes of the IRS, the SUV isn’t just another car when it comes to calculating the auto expense deduction. Every vehicle that is used primarily in business can calculate auto expenses either by taking the Standard Mileage Rate (40.5 cents a mile for each mile driven for business- for 2005) or use the Actual Expense Method, based on the total of the actual expenses incurred.
SUV TAX DEDUCTION LIST by Andy Jones (Saturday, January 1st, 2005)
Vehicles with GVWRs above 6,000 Pounds
Tax Deductible SUV- Latest Changes 10-22-04. The Basics Explained by Des Toops (Tuesday, November 2nd, 2004)
Thanks to the 2003 Tax Act, many small business es can instantly deduct up to $100,000 worth of new and preowned equipment in the year it’s first placed in service ($102,000 for 2004 after adjusting for inflation). The new $100,000 allowance is for tax years beginning in 2003 through 2005. The name of this generous break is the Section 179 depreciation deduction, and it can reduce both your federal income tax and self-employment tax bills. (You may get a state-tax deduction too.) Without it, you’d have to depreciate most business equipment over five to seven years. (Before the 2003 Act, the maximum Section 179 write-off for tax years beginning in 2003 and beyond was a mere $25,000.)
SUV TAX DEDUCTION UPDATE 10-15-04 by Andy Jones (Saturday, October 23rd, 2004)
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 businessat 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 businessto purchase that luxury Escalade or BMW X5 and enjoy a hefty tax advantage for 2004.
SUV Tax Deduction – Tax Planning Strategies for 2004 – SUV Tax Break -SUV Tax Loophole by Andy Jones (Thursday, September 2nd, 2004)
Gross Vehicle Weight Ratings (GVWR’s) of more than 6,000 pounds qualify. This article on the SUV Tax Deduction was written from a negative viewpoint but it also explains the SUV Tax Deduction brilliantly.
SUV Loophole Closing 10-15-04 by Christine Romero (Thursday, September 2nd, 2004)
The so-called Hummer tax break will soon be another thing in the rearview mirror. But it won’t be fading entirely.
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.
SUV Tax Break – SUV Tax Break Basics by Ron Tschida (Monday, December 8th, 2003)
Vicki Greenwood checked with her accountant and then cut a deal for a brand new H2 Hummer, taking advantage of the so-called SUV tax loophole that’s driving a surge in year-end sales of heavy weight vehicles.
SUV Tax Deduction – Vehicle List as it applies to Section 179 by Andy Jones (Wednesday, November 5th, 2003)
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.
SUV Tax Deduction Gains Momentum by Des Toops (Tuesday, September 2nd, 2003)
The SUV loophole just got big enough to drive a Hummer through. Among the provisions of the tax package just approved by Congress is an increase in the deduction allowed for small-business equipment purchases, which rises from $25,000 to $100,000. That means real estate agents, lawyers, doctors — anybody who files a Schedule C or corporate tax return — can write off the entire cost of virtually any big sport-utility vehicle . The potential tax savings in the top bracket is $35,000.
SUV Tax Deduction – Section 179 Pitfalls by Andy Jones (Tuesday, September 2nd, 2003)
If you made several equipment purchases for your business this year, you should know about the Section 179 deduction that allows you to immediately expense up to the entire cost of the assets you purchased (limited to $100,000 for 2003). But beware of a hidden pitfall within Section 179 the recapture rule.
SUV Deduction 2002 – Tax Planning Strategies Part 2 by Andy Jones (Wednesday, January 1st, 2003)
The U.S. government provides tax credits for many purposes to promote consumer behavior that benefits the greater good. Originally, the SUV credit was intended to apply to light trucks and was added so the purchase of work vehicles used by farmers and businesses that need trucks or vans to do their work (i.e., construction companies) would not be treated the same as the purchase of luxury cars. While purchases of new luxury cars are subject to a luxury-tax surcharge, the same treatment is not given to purchases of luxury passenger SUVs that weigh 6,000 pounds or more, simply because they are defined under the tax code as light trucks.
SUV Tax Deduction – Tax Planning Strategies 2002 by Andy Jones (Thursday, November 14th, 2002)
As 2002 is winding down, everyone needs to be thinking about maximizing their tax deductions. This month’s letter details some tax tips you may not know about. I hope everyone finds it helpful and informative. You may or may be able to use this tax advice. I urge you to consult a tax expert before you implement a tax strategy based on this information.