S-179 / $25K over 6,000 lbs.?

[Black Bart]

Does anyone happen to know the current ceiling on 179 depreciation for autos weighing over 6,000 lbs.?

I thought it was $25K, but somebody said that was supposed to be dropped or eliminated at one point, and then later I heard they were raising it to $100K.

Also, anybody know where to find a table of the autos qualifying as "6K" vehicles?

[solomon]

Pretty sure it is still 25k on SUV's. Here is a link to a table:

http://www.alphaleasing.com/businessaspects/over6000gvwr.asp

[BOB W]

Increased section 179 limits. The maximum section 179 deduction you can elect for qualified section 179 property placed in service in 2007 has increased to $125,000 ($160,000 for qualified enterprise zone and qualified renewal community property). This limit is reduced by the amount by which the cost of qualified property placed in service during the tax year exceeds $500,000.

[taxxcpa]

Gas guzzler incentive

The extra deduction for vehicles over 6000 lbs is designed to encourage people to use more gasoline. The tax break for fuel-efficient vehicles is designed to encourage them to use Less gasoline.

Next they need a break for those in between the gas guzzlers and the gas saver categories.

[veritas]

Nice link!

Pretty sure it is still 25k on SUV's. Here is a link to a table:

http://www.alphaleasing.com/business...er6000gvwr.asp

Thanks.....

[John of PA]

from PPC

From the PPC Quick Access Data Sheet dated 11-6-07
For auto's over 6,000 pounds (and under 14,000 pounds) the limit is 25,000 for 2006, 2007 and 2008. For other assets and trucks over 14,000 pounds the limit is 108,000 for 2006, 125,000 for 2007, and 128,000 for 2008. The Qualifying Property Limit is 430,000 for 2006, 500,000 for 2007, and 510,000 for 2008. Becasue of the 25,000 limits i'ts wise to space out the purchase of vehicles and not buy 2 in one year.

[Black Bart]

John / If you're right about the 25K ceiling, then

From the PPC Quick Access Data Sheet dated 11-6-07
For auto's over 6,000 pounds...the limit is 25,000

some Dodge buyers are going to have to dodge a bullet before April 15th. I got an ad in the mail today from the Dodge-Chrysler Southwest Business Center. It reads:

**** ************************************************** ************************************************
TAX TIP: GET A BIG TAX ADVANTAGE FOR YOUR BUSINESS WHEN YOU PURCHASE A QUALIFYING NEW DODGE TRUCK BY DECEMBER 31, 2007.

If you...use your vehicle for business...you need to know about Section 179.

Qualified small business owners are allowed to deduct up to the actual purchase cost (including sales tax and regardless of the amount financed) on TRUCKS with a GVWR greater than 6,000 lbs. and less than 14,000 lbs., in the FIRST YEAR.
**** ************************************************** *************************************************

Apparently they think the $125K applies rather than $25K. They barely covered themselves with this fig leaf at the end of the letter: "Please note that the information in this brochure is provided by Chrysler, LLC as a public service to its customers. It should not be construed as tax advice...Consult your tax professional before making any tax related purchasing decisions."

I'll bet people who buy a $40-45K super-sized crew-cab will throw a fit about it.

[John of PA]

Qualified Small Business Owners

The dealers association law firms review these ads to be sure they are legal. The reason they are legal is becasue Qualified Small Business Owners means a business owner who is buying a truck that costs less than 25,000. Your right that this is a facade, becasue probably 80% of the new trucks sold cost more than 25,000.

[Black Bart]

Okay,

...they are legal...becasue Qualified Small Business Owners means a business owner who is buying a truck that costs less than 25,000...

now I get it. Not only are they not unaware; they are very aware of that limit. Thanks for the tip John. Also thanx to these chipper-inners:

sol (I agree with V -- good link)
Bob (no 25K in your post--gotta watch you NY guys)
Veritas (just along for the ride, eh?)
taxxcpa (Welcome to the board in case somebody already hasn't. Yes, we need a middle-of-the-road credit. By the way, I'm driving a Tahoe but I vow and declare I'm gettin' a Prius just as soon as prices fall to Hyundai range. You?).

What are you guys driving? Any plans to change?

[BOB W]

now I get it. Not only are they not unaware; they are very aware of that limit. Thanks for the tip John. Also thanx to these chipper-inners:

sol (I agree with V -- good link)
Bob (no 25K in your post--gotta watch you NY guys)
Veritas (just along for the ride, eh?)
taxxcpa (Welcome to the board in case somebody already hasn't. Yes, we need a middle-of-the-road credit. By the way, I'm driving a Tahoe but I vow and declare I'm gettin' a Prius just as soon as prices fall to Hyundai range. You?).

What are you guys driving? Any plans to change?

Sorry, I didn't read the artical that I "copied and pasted", I thought it would of been complete. I learned my lesson the hard way, again.

[John of PA]

Prius!

BlackBart,
I drive a Prius and love it. I'm on my 2nd Prius already. I first had an 01 Prius, and now have an 06 Prius. Get anywhere from 30 to 50 mpg. Have had no problems yet except for one. The year I bought it, I totally waisted the Hybrid tax credit becasue I had an unusual year in which I had zero tax liability before the credit. Oh well!

[veritas]

For me it is made in America!

2007 Toyota Camry

[Black Bart]

John

BlackBart,
I drive a Prius and love it. I'm on my 2nd Prius already. I first had an 01 Prius, and now have an 06 Prius. Get anywhere from 30 to 50 mpg. Have had no problems yet except for one. The year I bought it, I totally waisted the Hybrid tax credit becasue I had an unusual year in which I had zero tax liability before the credit. Oh well!

I was thinkin' about maybe buying a car (I want another Tahoe, but the gas is 60 bucks per tank). I think the tax credit expired in October, but for 50 MPG it might be worth it anyway. I don't know anything about them though -- do they run on gas and electricity both and how does that work? Do you have to plug it in to your garage at night or what? Any repair costs that you wouldn't have on a conventional car? Trade-in value, etc.? About how much does an average one cost? Thanks.

Veritas -- What was it (yuk-yuk) that you used to call those bikes other than Harleys?

[sea-tax]

BlackBart,
I drive a Prius and love it. I'm on my 2nd Prius already. I first had an 01 Prius, and now have an 06 Prius. Get anywhere from 30 to 50 mpg. Have had no problems yet except for one. The year I bought it, I totally waisted the Hybrid tax credit becasue I had an unusual year in which I had zero tax liability before the credit. Oh well!

Dealers in my area are telling unsuspecting buyers that if they lease the prius or another qualified vehichle that they get the credit. The only problem is that if you lease the vehicle the leasing company gets the credit becuase they are infact the purchaser of the vehicle.

Per IRS:
Hybrid Cars and Alternative Fuel Vehicles

Updated frequently — last updated Dec. 11, 2007

Vehicles Purchased or Placed in Service
The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006.

The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit


__________________________________________

This very situation happened to one client that my partner has, he was not very happy when he was told that the dealership lied to him.

[Bees Knees]

some Dodge buyers are going to have to dodge a bullet before April 15th. I got an ad in the mail today from the Dodge-Chrysler Southwest Business Center. It reads:

**** ************************************************** ************************************************
TAX TIP: GET A BIG TAX ADVANTAGE FOR YOUR BUSINESS WHEN YOU PURCHASE A QUALIFYING NEW DODGE TRUCK BY DECEMBER 31, 2007.

If you...use your vehicle for business...you need to know about Section 179.

Qualified small business owners are allowed to deduct up to the actual purchase cost (including sales tax and regardless of the amount financed) on TRUCKS with a GVWR greater than 6,000 lbs. and less than 14,000 lbs., in the FIRST YEAR.
**** ************************************************** *************************************************

Apparently they think the $125K applies rather than $25K. They barely covered themselves with this fig leaf at the end of the letter: "Please note that the information in this brochure is provided by Chrysler, LLC as a public service to its customers. It should not be construed as tax advice...Consult your tax professional before making any tax related purchasing decisions."

I'll bet people who buy a $40-45K super-sized crew-cab will throw a fit about it.

A super-sized crew-cab would qualify for a $45K Sec 179. The 25K limit only applies to SUVs. Pickup trucks with at least 6 feet of cargo area that is not accessible from the cab is not subject to the 25K limit.

See TTB page 10-7.