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George Saenz, the Bankrate.com Tax Talk columnistSection 179 and my new Ford F-250

Dear Tax Talk,
OK, I have a small business, I am a contract accountant and I am trying to take advantage of the Section 179 by purchasing an F-250. I was referred to this by the dealership.

I can purchase the truck for $24,500 and it weighs past the 6,000-pound minimum. Does it sound as though this qualifies for the Section 179? I know it's funny to get a tax question from an accountant, but hey, I am not sure!
-- Chris

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Dear Chris,
I think that I get a lot of questions from accountants, but they just don't admit it. So let's pretend you're a plumber since accountants don't generally tool around in F-250s.

Yes, the law still favors the purchase of disproportionately large vehicles when it comes to depreciation deductions. While the extremely generous days that allowed expensing of $50,000 to $75,000 sport utility vehicles are gone, there is still a more rapid write-off for those SUVs, trucks and vans with a gross vehicle weight rating in excess of 6,000 pounds.

In your case, you will be able to claim Section 179 expense on the entire cost of the business portion of the vehicle. For example, if you use your truck for 80 percent business purposes, and are otherwise eligible, you'll be able to claim $19,600. Recall from your accounting classes that you can only claim Section 179 expense to the extent of your profit.

To ask a question on Tax Talk, go to the "Ask the Experts" page and select "taxes" as the topic.

Bankrate.com's corrections policy -- Posted: Jan. 4, 2007
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