S-179

[Black Bart]

For 2006 - is this still $3,260 for light trucks and $25K for those over 6K pounds?

[Snaggletooth]

Snaggletooth

Good grief, Bart.

Let's have a round of applause for that monumental throng of experts who answered your question.

Don't look at me -- I don't know either...

Snag

[veritas]

Me either. But since you mentioned light trucks the limitation (3,260) may not apply if the the truck is over 6000 lbs gross vehicle weight. A passenger auto is 6000 lbs or less unloaded gross vehicle weight.


I looked up a 2006 Chevrolet Silverado 1500 6 cylinder 2wd. Gross weight is 6,100 lbs.

I have a Dodge Dakota Quad Cab. Gross vehicle weight is 6,010 lbs.

[Black Bart]

Hi guys,

And thanks for weighing in.

[JG EA]

Ha weighing in

And thanks for weighing in.

A truck joke - I get it.

[S T]

?? Sect 179 for 2006 on SUV over 6000

Hi BB,

The closest reference I could find for the 2006 limits for trucks and Sect 179 for 2006 is posted below.

I can find nothing to the contrary on the IRS website or CCH, NATP, etc. So looks like passenger under 6000 lbs is $2,960, light truck is $3,260 ( passenger auto built on a truck chassis, including minivans and sport-utility vehicles (SUVs) built on a truck chassis rated at 6000 lbs or less) and the Sect 179 for over 6000 lbs SUV would be the max of $25,000. (Over 50% business use)

Then there is the group over 6000 lbs that is exempt from the $25,000 sect 179

Exempt Vehicles Not Subject to the $25,000 Section 179 Limitation
Exempt vehicles that meet any of the following criteria are not subject to the $25,000 Section 179 limitation if they are:
Designed to have a seating capacity of more than 9 persons behind the drivers seat,
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 from the passenger compartment, or
Designed with an integral enclosure, fully enclosing the drivers compartment and load carrying device and does not have seating rearward of the drivers seat and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.

also here is the IRS 2006-18 rev proc published march 2006. http://www.irs.gov/irb/2006-12_IRB/ar11.html

If you check TB updates, there is no reference to any change on the Sect 179 for over 6000 lbs for 2006.

Unless it is buried in the new Pension Protection Act for 2006!

Best I could come up with,

Sandy

[Black Bart]

Hi again, folks

Snaggletooth: Where've you been, you old coon? You've been laying a tad low lately, except for an occasional blurb of insight. I thought you'd gotten lost in a hollow in the hills somewhere.

Veritas: Are you prepared to testify in court that you don't have ten pounds of bricks under the back seat of that Dodge?

JG: It was amusing, but, unfortunately, unintentional -- I didn't get it 'til you pointed it out -- nice catch, though.

Sandy: I nominate you for "chief of reference" on the board, as you always have the straight dope on everything. Thanks very much.

About that post though, it definitely qualifies as one of my shorter "works" (and I use that term very loosely). Although my usual offerings don't qualify for the larger S-179 (under 6,000 lbs. unloaded gross words), I feel I should be allowed to either depreciate those words or get a depletion allowance for my brain. Legal opinions?

[DTS]

Re: Sandy

Bart,

Sandy and I have an cute nickname for her. In conversation, we both refer to her as the "Queen of Research".

No one can find anything on the Internet and reference material faster and more detailed than she can. Right on point! She has tried to teach me and I am learning, but I have light years to go before I can be put in her league!

Dennis

[Black Bart]

The Queen

I, like, totally agree.

[Bees Knees]

For 2006 - is this still $3,260 for light trucks and $25K for those over 6K pounds?

TTB updates for page 10-1 says it is still $3,260 for 2006. The 25K Section 179 deduction is for SUVs only. If there is a cargo area of at least six feet not readily accessible from the passenger compartment, such as a pick up truck over 6,000 lbs, the 25K Section 179 limit does not apply.

The 25K limit is not indexed for inflation, so it will remain at that level until changed by Congress.

[veritas]

You know what would be neat is a table with the specifc vehicles listed and the depreciation limitations applicable for each vehicle.

You could market it and I'll bet several thousands could be sold.

[Black Bart]

Limit?

If there is a cargo area of at least six feet not readily accessible from the passenger compartment, such as a pick up truck over 6,000 lbs, the 25K Section 179 limit does not apply.

Bees / Are you saying that if the pickup weighs over 6K, then it's treated just like a piece of machinery and you can deduct up to (what's that limit?) $100K or so?

[S T]

Over 6k lbs

2006 Maximum 179 deduction $108,000 for other.

If the truck over 6,000 lbs, can not be accessed from the drivers/passenger compartment, and the cargo bed is MORE than 6 feet in length , it would be exempt from the Sect 179 $25,000 rules.

Trucks and vans that are not likely to be used for personal driving because of their design, such as panel trucks with limited seating, box trucks, cargo vans, etc are not subject to the “luxury auto” rules regardless of their weight.

An example: t/p purchases a full size pickup turck with an 8 foot cargo bed to be driven by the business/owner for $40,000. The entire cost of the pickup truck may be deducted under Sect 179, It has a weight of over 6000 lbs and a 6 foot or greater interior length box/bed.

OR if t/p purchased a 4 door extended cab pickup with a short 5.5 foot interior length cargo bed, the Section 179 deduction would be limited to $25,000.

Sandy

[RLymanC]

Six Feet

TTB updates for page 10-1 says it is still $3,260 for 2006. The 25K Section 179 deduction is for SUVs only. If there is a cargo area of at least six feet not readily accessible from the passenger compartment, such as a pick up truck over 6,000 lbs, the 25K Section 179 limit does not apply.

The 25K limit is not indexed for inflation, so it will remain at that level until changed by Congress.

Saw a TV commercial tuther night,,,,ad for pickup with a 6ft. 3in. bed. Think I'll get one for those romatic nights, I'm 6' 2".
Can you Sec 179 if your runnin a monkey business????

[Black Bart]

Accessible?

2006 Maximum 179 deduction $108,000 for other.

If the truck over 6,000 lbs, can not be accessed from the drivers/passenger compartment, and the cargo bed is MORE than 6 feet in length , it would be exempt from the Sect 179 $25,000 rules.

Trucks and vans that are not likely to be used for personal driving because of their design, such as panel trucks with limited seating, box trucks, cargo vans, etc are not subject to the “luxury auto” rules regardless of their weight.

An example: t/p purchases a full size pickup turck with an 8 foot cargo bed to be driven by the business/owner for $40,000. The entire cost of the pickup truck may be deducted under Sect 179, It has a weight of over 6000 lbs and a 6 foot or greater interior length box/bed.

OR if t/p purchased a 4 door extended cab pickup with a short 5.5 foot interior length cargo bed, the Section 179 deduction would be limited to $25,000.

Sandy

Okay, thanks for the info.

I think I get it. You're saying that if either the SUV or the pickup hits 6,000 lbs., then it moves out of "low" range depreciation and stops at $25K (tops for SUVs), except that if the pickup's bed is also over six feet, its ceiling goes on up to $108K. Is that right?

Like this?
SUV under 6K lbs. - $2,960
SUV over 6K lbs. - capped at $25K

Pickup under 6K lbs. - $3,260
Pickup over 6K lbs./under 6 ft. - capped at $25K
Pickup over 6K lbs./over 6 ft. - capped at $108K

There's another small question that I've been wondering about, though. Many buyers of new pickups in this area are having their stock rear windows replaced with custom, sliding glass panels so that, in fact, the rear cargo area (the truck bed) can be accessed from the cab -- at least to a certain degree. The opening is not big enough that one can crawl through it or even reach through it enough to do any significant amount of work. It mainly allows a cab passenger to talk to someone riding in the bed, hand toolbox items back and forth, or just bring air into the cab.

My question is this: since, with that panel, the cargo area is somewhat accessible; would that kill off the allowance of the up-to-$108K 179 ceiling for an over 6K lbs.-over 6 ft. bed pickup? Or do they (probably) mean an opening large enough to walk through? I'm thinking the answer to this probably doesn't exist in the literature.