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SUV tax break: bigger is better
Dear Tax Talk:
Does the sports utility vehicle tax deduction
apply if you are buying a qualifying used SUV in 2003? Or does it
only apply to new qualifying vehicles purchased this year?
Greg
Dear Greg:
I presume the tax deductions you refer to are the write-off
allowed for business use of certain heavy SUVs, such as Hummers
as discussed in this Bankrate.com article.
The deduction is referred to as the Section
179 deduction and applies equally to new or used property.
The interesting thing here is that only SUVs with
gross vehicle weight ratings in excess of 6,000 pounds qualify for
the higher deduction. In the case of a vehicle that is not a truck
or a van, it's unloaded gross vehicle weight rating has to exceed
6,000 pounds in order to claim the higher deductions.
The difference is that the truck or van can weigh
less than 6,000 pounds empty as long as the manufacturer specifies
that you can add enough weight in passengers, fluids and cargo to
get over the three-ton limit.
If you're like me and not interested in an SUV but
want the higher deductions, I suggest that you look at a limousine
or armor plating.
-- Posted: July 8, 2003
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