?Any other vehicles with tax advantages like the Range Rover?

It used to be most super large SUV's....so I would assume the new MB GL and the Lexus LX, as well as the Porsche Cayenne.

 

H2's do for sure. A friend purchased one for the business just for that reason.


Darrell.

 

anybody mind explaining how this works?

 

http://www.bankrate.com/brm/itax/tax_adviser/20060223a1.asp

Info from a bank site called Bankrate.

And here is why.

http://www.bankrate.com/brm/itax/Edit/tips/Stories/sec179_deduction.asp

 

Yea that would explain a lot for example this guy parked outside my work who is in business, not a wealthy tard
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I was also told this 'option' is now gone.

 

Correct.

 

I think they did away with that tax break in 2005. I think it pertained to any vehile that was over 6000# GVW which meant the large SUV's could be written off as a truck for business. The loophole was the reason every business owner was driving a Hummer or Escalade.

 

The tax break for Rovers still applies....

landroverusa.com/taxbreak

 

That link somebody posted for me above says it changed to 12,000 pounds now. Maybe a H1 is heavy enough?

 

if it still exists......( i think it was capped at $25k)

according to my CPA, the section 179 deduction (?) is now an audit red flag. you must also keep detailed usage records, etc. he said several of his "new" clients have received inquiries from the IRS.

i looked at it several years ago and determined it wasn't worth the hassle as you can expense the vehicle in a traditional manner and don't have to mess with any gains/losses on the back end.

"When considering the use of a Section 179 deduction, it's important to consider if the property would be sold or used 50% or less by the business prior to its normal depreciation period. If so, a business may have to recapture a portion of the Section 179 deduction and treat it as ordinary income. This recaptured income could be subject to an extra income tax and be subject to interest and penalties."

 

Its still around, just capped at 25k during the first year as the previous poster said.

Also, it is supposed to be recaptured upon sale, but I think if you keep it a certain amount of time there is a way to get out of this. As always with tax stuff, you should consult a proffesional. I have an SUV purchase to make soon and have been waiting to hear back from my CPA how it will impact my particular situation. 2003 GX470's have pretty bad resale compared to the 04's, a big chunk of it was that Lexus screwed up and only had it rated by the EPA to something like five pounds under what was needed for the tax deduction, this was fixed in 04.