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

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

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

This site may earn a commission from merchant affiliate links, including eBay, Amazon, Skimlinks, and others.

  1. PeterS

    PeterS Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    49,719
    Goodyear, AZ
    Full Name:
    PeterS
  2. Juice It

    Juice It F1 Rookie

    Sep 22, 2002
    3,233
    Maryland (DC Suburb)
    Full Name:
    Jeff
    It must be done by Jan 1. My buddy just got the Lexus Gx470 on Friday to take advantage of this.
     
  3. PeterS

    PeterS Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    49,719
    Goodyear, AZ
    Full Name:
    PeterS
    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

    Sep 22, 2002
    3,233
    Maryland (DC Suburb)
    Full Name:
    Jeff
    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

    Sep 24, 2002
    1,293
    Washington St.
    Full Name:
    Joseph
    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 Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    49,719
    Goodyear, AZ
    Full Name:
    PeterS
    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

    Sep 22, 2002
    3,233
    Maryland (DC Suburb)
    Full Name:
    Jeff
    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 Eight Time F1 World Champ
    Rossa Subscribed

    Apr 28, 2003
    80,355
    Texas!
    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 Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    49,719
    Goodyear, AZ
    Full Name:
    PeterS
    Does it have to be a new SUV?
     
  10. Texas Forever

    Texas Forever Eight Time F1 World Champ
    Rossa Subscribed

    Apr 28, 2003
    80,355
    Texas!
    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 Three Time F1 World Champ

    Oct 17, 2001
    33,757
    Full Name:
    Joe Mansion
    why would the govt encourage pple buying this kind of car ? Its short term thinking.
     
  12. Doody

    Doody F1 Veteran

    Nov 16, 2001
    6,099
    MA USA
    Full Name:
    Mr. Doody
    drtax - please be sure to share the recreational drugs ;-)

    these tax idiocies make my blood boil.

    doody!
     
  13. rexrcr

    rexrcr Formula 3

    Nov 27, 2002
    1,572
    Kalamazoo, MI
    Full Name:
    Rob Schermerhorn
    GM lists the Buick Rendezvous with 5.3l V8 at 6001 lb GVWR just for this reason.

    Rob
     
  14. davem

    davem F1 Veteran
    Silver Subscribed

    Jan 21, 2002
    8,897
    Stepford, Connecticut
    Full Name:
    dave m
  15. Cavallino Motors

    Cavallino Motors F1 World Champ
    Lifetime Rossa

    May 31, 2001
    14,143
    Florida or Argentina
    Full Name:
    Martin W.
    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 Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    49,719
    Goodyear, AZ
    Full Name:
    PeterS
    "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
    Owner Silver Subscribed

    Jul 30, 2001
    24,718
    Dallas, TX
    Full Name:
    Jim E
    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 Four Time F1 World Champ
    Silver Subscribed

    Jan 24, 2003
    49,719
    Goodyear, AZ
    Full Name:
    PeterS
    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

    Nov 5, 2003
    98
    Newport Beach Ca
    Law was created for small business owners to purchase trucks and machinery at that weight level.
     
  20. G-force

    G-force F1 Rookie

    Aug 4, 2002
    3,053
    so california
    Full Name:
    wayne skiles
    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 Three Time F1 World Champ

    Oct 17, 2001
    33,757
    Full Name:
    Joe Mansion
    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 Three Time F1 World Champ

    Oct 31, 2003
    39,248
    California
    Full Name:
    Ryan
    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

    Nov 1, 2003
    1,316
    under the sea!

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

Share This Page