SUV subsidy
August 24, 2005 6:31 PM Subscribe
TaxGeek filter: Where can we find the SUV subsidy provision?
The Internal Revenue Code, we are told, has a provision for a hefty tax benefit for those who purchase a vehicle over 3 tons when it is used solely for business. Where do we find this provision?
The Internal Revenue Code, we are told, has a provision for a hefty tax benefit for those who purchase a vehicle over 3 tons when it is used solely for business. Where do we find this provision?
dediction = deduction. And strictly speaking it is not a deduction anyway. Sorry.
posted by Fat Guy at 6:45 PM on August 24, 2005
posted by Fat Guy at 6:45 PM on August 24, 2005
It is not an extra deduction. It merely accelerates your deductions (you get more tax breaks this year, less next). If you buy a lower cost vehicle you will save more in the end.
posted by caddis at 7:44 PM on August 24, 2005
posted by caddis at 7:44 PM on August 24, 2005
The tax benefit you're speaking of, which was indeed substantial and got many people to buy heavy SUVs, was largely eliminated in the 2004 tax legislation. There is still some benefit in terms of more depreciation earlier, but you can no longer write the entire purchase off as you could in earlier years.
posted by anapestic at 5:14 AM on August 25, 2005
posted by anapestic at 5:14 AM on August 25, 2005
No, it's still around. More hereand here . If you can substantiate the business use and your vehicle is over 3 tons, you can qualify for a §179 depreciation deduction, just at a lower rate than the 100% that was formerly possible for some vehicles.
posted by dhartung at 11:51 PM on September 2, 2005
posted by dhartung at 11:51 PM on September 2, 2005
This thread is closed to new comments.
I'm looking at this with the perscpective of a former IRS employee. Someone who actually took this dediction might be able to give you a beter answer.
posted by Fat Guy at 6:44 PM on August 24, 2005