2014 179 deduction and bonus depreciation

[JenMO]

What are the chances that there will be an extender for this for 2014? Equipment dealers around here have posters that say "better buy in 2013" because deductions are going down for 2014. Sales incentive for them, I guess, but it's been extended before. If stimulating the economy is necessary, you have to give people a reason to spend.

[jimmcg]

What are the chances that there will be an extender for this for 2014? Equipment dealers around here have posters that say "better buy in 2013" because deductions are going down for 2014. Sales incentive for them, I guess, but it's been extended before. If stimulating the economy is necessary, you have to give people a reason to spend.

Depends upon how much the lobyists' are willing to pay to influence the legislators.' That is how our government works.

[Wiles]

Cynical?

Depends upon how much the lobyists' are willing to pay to influence the legislators.' That is how our government works.

jimmcg, you seem so cynical. The purpose of our government, as laid out in our Constitution, is to protect individual liberties and to shift most of the powers from the Federal government to the States. It is clear that everything they do today is consistent with this framework.

$5 says Congress extends Sec 179 to at least $100K for 2014. If you give me 4:1 odds I will commit to $200K as the number.

[veritas]

it also seems

[QUOTE=Wiles;157929]jimmcg, you seem so cynical. The purpose of our government, as laid out in our Constitution, is to protect individual liberties and to shift most of the powers from the Federal government to the States. It is clear that everything they do today is consistent with this framework.

$5 says Congress extends Sec 179 to at least $100K for 2014. If you give me 4:1 odds I will commit to $200K as the

That individuals and the states had all powers originally and decided that they would grant very limited powers to the federal government.

Now we have federal agencies monitoring online gaming.

[Wiles]

montoring

...and don't forget the federal agencies monitoring this thread

[Black Bart]

Why complain?

For years people have been saying the government wouldn't listen to them. And now...they are.

[Black Bart]

Back to the topic though,

don't know about 2014 either, but re 2013 the normal S-179 $3K limit on pickups (as you know) goes to $25K if the weight's 6000+ lbs and bed space (interior) is 6 feet. However, a tax preparer at a recent seminar said (news to me-maybe not to you) that many so-called "crew cab" full-size pickup (4 doors/seats 5) beds are only 5 1/2 feet long and thus are disqualified. Building contractors and farmers buy lots of these. Anybody ever had a client mention that? I haven't.

[DaveinTexas]

True Indeed

don't know about 2014 either, but re 2013 the normal S-179 $3K limit on pickups (as you know) goes to $25K if the weight's 6000+ lbs and bed space (interior) is 6 feet. However, a tax preparer at a recent seminar said (news to me-maybe not to you) that many so-called "crew cab" full-size pickup (4 doors/seats 5) beds are only 5 1/2 feet long and thus are disqualified. Building contractors and farmers buy lots of these. Anybody ever had a client mention that? I haven't.

That is true, trucks built a few years ago with the larger cabs sacrifice the 6 foot or longer beds for the larger cabin space. Two words that may solve the problem....bed extender. I've heard the bed extender (metal folding bed extenders that latch on to the inside of the tail gate) solves this problem.

I've been out of the truck market for a few years but I think current trucks have longer standard sized beds (6 foot or longer); manufacturers probably sat down with a few tax professionals before designing their trucks!

[Wiles]

Full size pickups

Perhaps I do not understand the rules, but I thought the $25K limit applied to SUV's (enclosed beds). Whereas, full size pickups exceed the 6,000 LB fully loaded GVW, thus get full Sec 179.

[DaveinTexas]

You are correct

Perhaps I do not understand the rules, but I thought the $25K limit applied to SUV's (enclosed beds). Whereas, full size pickups exceed the 6,000 LB fully loaded GVW, thus get full Sec 179.

You are right about the SUVs having the $25K limit for the Section 179 expense, but so do some trucks that do not have a Bed Length of at least 6 feet. Here's the site:

(5) Limitation on cost taken into account for certain passenger vehicles
(A) In general
The cost of any sport utility vehicle for any taxable year which may be taken into account under this section shall not exceed $25,000.
(B) Sport utility vehicle
For purposes of subparagraph (A)—
(i) In general The term “sport utility vehicle” means any 4-wheeled vehicle—
(I) which is primarily designed or which can be used to carry passengers over public streets, roads, or highways (except any vehicle operated exclusively on a rail or rails),
(II) which is not subject to section 280F, and
(III) which is rated at not more than 14,000 pounds gross vehicle weight.
(ii) Certain vehicles excluded Such term does not include any vehicle which—
(I) is designed to have a seating capacity of more than 9 persons behind the driver’s seat,
(II) is equipped with a cargo area of at least 6 feet in interior length which 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 *********
(III) 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.


Notice section (ii) where it mentions "Certain vehicles excluded such term does not include any vehicle which....(II) is equipped with a cargo area of at least 6 feet in interior length which is an open area or designed......

I suppose the IRS finally realized that certain SUTs like the Lincoln trucks and the Honda Ridgelines. These vehicles clearly weigh over the 6,000lb limits but the bed of these trucks couldn't haul the groceries from Sams; so they label these vehicles as SUVs and place the $25K limit for Section 179.

List of Trucks with the (less than) 6 foot beds include the Escalade, Avalanche, some Silverados, some Dakotahs and Rams, some F150s, some Sierras, Ridgelines, H2 Hummers, Mark LT, some Titans and some Tundra Crew Cabs. Some of these brands/makes do have longer than 6 foot beds, but usually the cab is smaller or it's a dually/diesel. I could've listed all of them but my fingers are getting tired

I purchased a 2008 Tundra a few years ago and was shocked it only had a 5.5 foot bed; as big as that truck was with just a little bed like that! I didn't buy it to write if off, but if I did, I would've been limited to these rules. Like I said, I think the bed extender may solve the problem but I have never tested the theory.