Sect 179 "Truck or Van 6K lbs+...."

[AZ-Tax]

Does anyone know and/or is there a website for:

Based on the 2007 Sect 179 rules, does a Hummer 2006 H2 SUT qualify as a "Truck or Van over 6,000 lbs" thus allowing the Sect 179 deduction to exceed the $25,000 limit?

This is the Hummer that has the open cargo space on the back.

http://www.edmunds.com/hummer/h2sut/2006/review.html

I am reading from TTB (deluxe) page 10-7, Section 179

[Bees Knees]

TTB page 10-7 says:

The $25,000 limit does not apply to any vehicle:
• Designed to have a seating capacity of more than nine persons
behind the driver’s seat,
• Equipped with a cargo area of at least six feet in interior length
that is an open area or is designed for use as an open area but is
enclosed by a cap and is not readily accessible directly from the
passenger compartment, or
• That has an integral enclosure, fully enclosing the driver compartment
and load carrying device, does not have seating rearward of
the driver’s seat, and has no body section protruding more than
30 inches ahead of the leading edge of the windshield.

If your Hummer meets any of these, the $25,000 limit does not apply. If the Hummer cannot meet any of these, the $25,000 limit applies.

Is there more than nine passenger seats behind the driver's seat? If yes, no $25,000 limit.
Is there a cargo area of at least 6 feet (not counting the area you can create by taking out passenger seats)? If yes, no $25,000 limit.
Is the hood not more than 30 inches ahead of the windwhield? If yes, no $25,000 limit.

If you can't answer yes to any of these three, the Hummer is an SUV, subject to the $25,000 limit.

[AZ-Tax]

I just thought maybe someone has been thru...

this before meaning they had or have a client that had or has this same year, make and model Hummer and Sect 179 it. The client insists that it qualifies for Truck or Van status but I have not seen the vehicle yet...

[Bees Knees]

Ask the client the three questions. Why should you have to examine the vehicle? You’re not conducting an audit.

[BOB W]

I still don't get the greater than 30"......... A Hummer does, a pickup truck does, most SUV's has more than 30" of hood space....??????? This rule makes none of these eligible for more than $25,000.

I FIXED MY DOUBLE NEGATIVE... SORRY

[veritas]

I had to reread your statement.

I still don't get the greater than 30"......... A Hummer does, a pickup truck does, most SUV's has more than 30" of hood space....??????? This rule makes none of these not eligible for more than $25,000.

All those vehicles are greater than 30" so they are ineligible for more than 25,000.

I believe our Senator Wyden was instrumental in eliminating the SUV break

[David1980]

I still don't get the greater than 30"......... A Hummer does, a pickup truck does, most SUV's has more than 30" of hood space....??????? This rule makes none of these not eligible for more than $25,000.

I think that's gotta be for the UPS variety vehicles. Because the cargo compartment is accessible from the passenger area it doesn't meet #2, but because it's got no real hood to speak of (less than 30") it qualifies for > $25k deduction.

I think on the hummer you are SOL. If the taxpayer really wants to 179 more than 25k, sell them a "box" and let them do their own taxes.

[joanmcq]

Cargo vans don't have much hood either, but the cargo area is accessable from the drivers area. That is what I thought of when I read the definition.

[Bees Knees]

So if Chevy came out with a stub nosed Suburban, they could advertise it as not being subject to the $25,000 SUV limit.

[cpadan]

So if Chevy came out with a stub nosed Suburban, they could advertise it as not being subject to the $25,000 SUV limit.

Only if it had no seating behind the dirver seat, per Code Sec. 179(b)(6)(B)(ii)(III) .

[Bees Knees]

Only if it had no seating behind the dirver seat, per Code Sec. 179(b)(6)(B)(ii)(III) .

Correction, a stub nosed Chevy Suburban with only a drivers seat...

[BOB W]

TTB page 10-7 says:



If your Hummer meets any of these, the $25,000 limit does not apply. If the Hummer cannot meet any of these, the $25,000 limit applies.

Is there more than nine passenger seats behind the driver's seat? If yes, no $25,000 limit.
Is there a cargo area of at least 6 feet (not counting the area you can create by taking out passenger seats)? If yes, no $25,000 limit.
Is the hood not more than 30 inches ahead of the windwhield? If yes, no $25,000 limit.

If you can't answer yes to any of these three, the Hummer is an SUV, subject to the $25,000 limit.

So a standard pickup truck will never qualify because of the 30" issue, even if it satisfies the 6'+ bed.

[Bees Knees]

So a standard pickup truck will never qualify because of the 30" issue, even if it satisfies the 6'+ bed.

No, a pickup truck will qualify. All you have to do is pass one of the three. Not all three.

[BOB W]

Very interesting>>>>>>>>>>>>>>> thanks for the clarification.