Section 179 SUV Deduction

[Taxman]

I have a question regarding the section 179 deduction and how it applies to SUV's. In publication 946 it states the following:

You cannot elect to expense more than $25,000 of the cost of any sport utility vehicle (SUV) and other vehicles placed in service after October 22, 2004. This rule applies to any 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that is not subject to the passenger automobile limits, and is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight.

My question is does a Ford Expedtion or Explorer qualify for the $25,000 deduction? If not, what kind of SUV's would qualify?

Thanks

[KBTS]

Vehicle List

Here is a list I found on the web. It does not appear the Ford Explorer qualifies.


BMW
X5 SUV

CADILLAC
Escalade SUV
Escalade EXT

CHEVROLET
Astro Passenger Van (AWD)
Avalanche Pickup
Express Van
Silverado Pickup
Suburban SUV
Tahoe SUV
Trailblazer EXT LT

DODGE
Durango SUV
Ram Van
Ram Wagon
Ram 1500 Pickup
Ram 2500 Pickup
Ram 3500 Pickup

FORD
Excursion SUV
Expedition SUV
Econoline (E150, E250, and E350) Van
Econoline Wagon
F150 Pickup
F250 Pickup
F350 Pickup

MERCURY
Mountaineer AWD

GMC
Safari Passenger Van AWD
Savana Van
Sierra Pickup
Sierra Denali
Yukon (including XL and Denali) SUV

HUMMER
H1 & H2 SUV

LAND ROVER
Discovery SUV
Range Rover SUV

LEXUS
LX470 SUV

LINCOLN
Aviator & Navigator SUV
Mark LT Truck

MERCEDES
M-class SUV (ML 320, ML 500, ML55 AMG)

PORSHE
Cayenne

TOYOTA
Land Cruiser SUV
Sequoia SUV
Tundra Pickup (Limited models)

VOLVO
XC90

VW
Touraeg

[Taxman]

Thanks

Thanks for your response. What was the name of the web site?

[KBTS]

Website

I did a Google search and came up with several websites. This one had the listing in the easiest format to cut and paste.

http://www.carguyshow.com/taxcodefinal.htm

[Black Bart]

Vehicle Weights

Here's some figures that I swiped from QF posted by one "Alan anonymous" on 9-27-04
(how's that for compliance, Ed?--you cayn't say I cayn't take a hint--if it's the wrong oil--I mean url, then I'll get 'er changed).

BASE CURB WEIGHT - The nominal weight of a vehicle with standard equipment and a full tank of fuel. It does not include passengers, cargo, or optional equipment.

CARGO WEIGHT - Includes all weight added to the base curb weight, including passengers, cargo, and optional equipment. Trailer tongue weight is also part of the cargo weight when towing.

GROSS VEHICLE WEIGHT (GVW) - The actual weight of the vehicle when fully loaded. It is the base curb weight plus the cargo weight.

PAYLOAD - The combined, maximum allowable weight of cargo, occupants, and optional equipment that the vehicle is designed to carry (Gross Vehicle Weight Rating minus the base curb weight).

GROSS VEHICLE WEIGHT RATING (GVWR) - The maximum allowable weight of the fully loaded vehicle.

GROSS COMBINED WEIGHT (GCW) - The actual weight of the vehicle and trailer combined. This weight should always be obtained by weighing the vehicle and trailer together on a scale.

GROSS COMBINED WEIGHT RATING (GCWR) - The maximum weight of the towing vehicle and the loaded trailer - including cargo and passengers.

So there--those might come in handy.

One more thing, Ed--although I didn't cut any paste to write those figures, I know you want 'em checked out and, givin' it the old college try, I called the horse's mouth (IRS) about it. Sorry to say, it turns out they aren't up on it much either. Tried askin' the rep about loaded and unloaded weights--boy, did she think I was dumb. Sarcastically told me to weigh it with people in it and with people out of it. "It ain't rocket science," I believe was the way she snarled it. Tryin' another approach I asked about GVW, but she said she was callin' her supervisor if I started "talkin' sexual." With that, I gave up and hung up. It looks like we're just gonna have to take our chances with copyright laws, plagiarism, possible bogus info and ever'thing else.

[Black Bart]

More 179 Stuff

Here's a few more items (besides the CPE hours) I picked up at the two-day tax semimar this week. The first section is old stuff, but bears repeating. I quote--book verbatim:

LIMITATION OF AVAILABLE S-179 DEDUCTIONS FOR CERTAIN SUVs.

The American Jobs Creation Act of 2004 limited the amount of S-179 deductions allowed to $25,000 on certain SUVs and other vehicles. Any balance remaining after taking the S-179 deduction is depreciated over the normal five-year recovery period for an SUV.

The following vehicles (otherwise exempt from the luxury depreciation limitations) are subject to the new $25,000 S-179 limitation. These are vehicles placed in service after October 22, 2004, that are

* Not subject to IRC 280F, and

* Rated at 14,000 lbs. of gross vehicle weight or less.

There is no maximum deprecition limitation, but standard limitations still apply such as percentages of business use.



EXEMPT VEHICLES NOT SUBJECT TO THE $25,000 S-179 LIMITATION.

Exempt vehicles are not subject to the $25,000 S-179 limitation if they are:

* 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, 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 driver's 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.



The instructor (retired IRS) said the six foot restriction was designed to catch most of the 4-door crew cab trucks which have a bed of less than six feet. He also said truck makers are expected to come out next year with 6'-1" beds to defeat the restriction.