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Buy a 6,000 pound SUV for a 100% tax write-off!

Discussion in 'General Automotive Discussion' started by PeterS, Nov 16, 2003.

  1. PeterS

    PeterS Three Time F1 World Champ
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    #1 PeterS, Nov 16, 2003
  2. Juice It

    Juice It F1 Rookie
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    #2 Juice It, Nov 16, 2003
    It must be done by Jan 1. My buddy just got the Lexus Gx470 on Friday to take advantage of this.
     
  3. PeterS

    PeterS Three Time F1 World Champ
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    #3 PeterS, Nov 16, 2003
    How does the tax break work if I put $20K down on a $40K SUV. Do I get to write off the $20K or the $40K?
     
  4. Juice It

    Juice It F1 Rookie
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    #4 Juice It, Nov 16, 2003
    You can write off the 40k but if you sell it in say a year, whatever you sell it for is considered income if you already took the complete depreciation write off.
     
  5. Mojo

    Mojo Formula 3

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    #5 Mojo, Nov 16, 2003
    I don't think the lexus weighs 6000lbs,
    I have the LX450 and it only weighs 5000lbs.
    Looks like were going backwards on fuel laws.
     
  6. PeterS

    PeterS Three Time F1 World Champ
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    #6 PeterS, Nov 16, 2003
    I looked at the Toyota Sequoia. I do not understand what the weights mean, as follows:

    Weights and Capacities

    Curb weight (lbs.) (2WD/4WD) 5,070/5,270 5,100/5,295

    Gross Vehicle Weight Rating -- GVWR (lbs.) (2WD/4WD) 6,500/6,600 6,500/6,600

    Can somebody tell me if the GVW is what is used to determine the tax break?

    Jeff M..You mean to tell me that I can put $2K down and take a $40K write off? I am in a 26% net tax bracket, so I'll get $10K back from uncle Sam? This seems too good to be true!
     
  7. Juice It

    Juice It F1 Rookie
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    #7 Juice It, Nov 16, 2003
    Not surehow that would work but the weight is calculated on the GVWR which includes all the cargo and fuel it can hold so the GX470 came in at 6100lbs. Also, the vehicle has to be used 50% for work puposes.
     
  8. Texas Forever

    Texas Forever Three Time F1 World Champ
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    #8 Texas Forever, Nov 16, 2003
    Listen carefully Grasshooper. The answer that you have been looking for is right in front of your eyes. Just open the door and look at the plate. If the GVWR is more than 5,999, you have a winner!

    Mahatma Tax
     
  9. PeterS

    PeterS Three Time F1 World Champ
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    #9 PeterS, Nov 16, 2003
    Does it have to be a new SUV?
     
  10. Texas Forever

    Texas Forever Three Time F1 World Champ
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    #10 Texas Forever, Nov 16, 2003
    Ah, Grasshopper, your chirpping is giving me a headache. Have you not noticed that all Congress people have two homes? Thus, deducting interest on two homes is a good thing.

    Now think, how many times have you seen a Congress person drive a used car?

    Also, have you ever seen the nice guy from the NEW car companies give the nice Congress person a bag full of money for promoting used cars?

    Think Grasshooper, think!

    Maharishi Tax
     
  11. amenasce

    amenasce Two Time F1 World Champ
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    #11 amenasce, Nov 17, 2003
    why would the govt encourage pple buying this kind of car ? Its short term thinking.
     
  12. Doody

    Doody F1 Veteran

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    #12 Doody, Nov 17, 2003
    drtax - please be sure to share the recreational drugs ;-)

    these tax idiocies make my blood boil.

    doody!
     
  13. rexrcr

    rexrcr Formula 3

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    #13 rexrcr, Nov 17, 2003
    GM lists the Buick Rendezvous with 5.3l V8 at 6001 lb GVWR just for this reason.

    Rob
     
  14. davem

    davem F1 Veteran
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    #14 davem, Nov 17, 2003
  15. Cavallino Motors

    Cavallino Motors F1 World Champ
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    #15 Cavallino Motors, Nov 17, 2003
    I bought the H2 in October for that and only that reason. I am not even driving the car much. It guzzles so much friggn gas that I will end up broke by 2004 before I can file my taxes for that darn refund.

    ...and yes, that is the way it works!

    All compliments of our "oily" president who makes money when you gas up. Ah its good to be King!
     
  16. PeterS

    PeterS Three Time F1 World Champ
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    #16 PeterS, Nov 17, 2003
    "why would the govt encourage people buying this kind of car ? Its short term thinking"........Simple! To create more jobs for the US automakers that build the SUV's.

    I also believe that ALL inscentives for 100% electric cars should be done away with. These cars cause more pulution than a gas car or truck.
     
  17. jimpo1

    jimpo1 Two Time F1 World Champ
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    #17 jimpo1, Nov 17, 2003
    The thing this article doesn't tell you is that you have to own a small business. Martin, GWB didn't have anything to do with this law, it was passed before his time. Of course, you know that already.

    Dale, isn't there some 'retroactivity' to the law, in that if you bought a truck a few years ago and didn't right it off, you can go back and amend your earlier returns or take the full right off this year?
     
  18. PeterS

    PeterS Three Time F1 World Champ
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    #18 PeterS, Nov 17, 2003
    I called my accountant this morning on this question. He had the following:

    You can take a deduction ONLY if your business has a profit. If you pay $40K for the SUV and show $10K profit, you can only take a deduction against the $10K profit. The balance will be carried over to the next tax year. If the next year you have $30K in profit, the carry-over will zero out the taxible income for your business. One CANNOT make the purchase to create a loss. Also, you will have the choice of taking the actual costs or the mileage. I take mileage myself. For business, I drive about 45K miles per year. This year at $.32 per mile, the 45K miles will give me a deduction of $14.4K. Being in a 26% net bracket, I'll get $3,744 back or $312 per month in Uncle Sam income to offset the payment for 2004.
     
  19. WFO_Racer

    WFO_Racer Karting

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    #19 WFO_Racer, Nov 17, 2003
    Law was created for small business owners to purchase trucks and machinery at that weight level.
     
  20. G-force

    G-force F1 Rookie

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    #20 G-force, Nov 17, 2003
    Law was realy for farm vehicles but wasn't restrictive enough
    so of course we all can take advantage of loophole.
    I did last year with Lincoln Navigator.
     
  21. amenasce

    amenasce Two Time F1 World Champ
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    #21 amenasce, Nov 17, 2003
    ok , i get it now . It was meant for trucks like the F body and such but pple started buying SUV for soccer moms as well ?
     
  22. LAfun2

    LAfun2 F1 Veteran

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    #22 LAfun2, Nov 17, 2003
    funny there have been two threads on this exact topic, but it seems like a new one gets created every week.

    we need a search nazi, like other forums ;)
     
  23. BigDog

    BigDog Formula 3

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    #23 BigDog, Nov 18, 2003

    ya, in fact.... i was the one that made the last thread :D
     

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