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

[Bees Knees]

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.

Not entirely accurate.

Pick up trucks with cargo areas at least 6 feet in length that weigh over 6,000 pounds qualify for the $125,000 Sec 179 limit. [IRC §179(b)(6)(B)(ii)(II)]

[Black Bart]

Thanx Bees,

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.

Hmm; I guess it's "Chrysler providing a public service" after all, rather than "Chrysler out to make a buck." My apologies, big guy.

[John of PA]

Camry Hybrid MPG?

Veritas, what kind of MPG are you getting on the Camry Hybrid?

[John of PA]

Hybrid Talk

Black Bart,
The only Hybrid that will get 50mpg would be small ones. The Prius is not tiny, but it's smaller than the Camry, maby about the size of the Toyota Corolla. There are now Hybid Pick Up trucks (Chevy) but thier gas milage would not be as good becasue they are a bigger, heaver truck. They run on gas and/or electric. The car's computer decides when to go into electric mode. ex: if your stopped at a stop sign, the gas engine will shut off by itself becase the compter decided you don't need the gas engine running. As soon as you tap on the gas peddle, the gas engine will go on immediately or soon thereafter as needed. The electic motor propels the car at low speeds when the gas engine is off. There is not plug, it just drives like a regular gas car. In 2 or 3 years, there will be "plug in" Hybrids out where if you want (you don't have to, it's totally optional), but if you want you can plug in the car (110 outlet) overnight to top off the Hybrid batteries). If you do, you will get over 100 MPG the next day because the batteries, fully energized from the "grid" will be able to do much more of the work and the gas engine can stay off longer. There are no extra repair cost that I have come across. The batteries are under warranty for 8 years. If anything you may save becasue (at least in PA) you do not need emissions test as much. Trade-in value? As long as gas prices are high, the trade in value is high. After 4 years, I got an 11,000 trade in value on my 01 Prius (which cost 21,000 new). The new Toyota Prius start around 23,000. They SUV Toyota Highlander Hybrid starts around 30,000. Happy motoring!!

[John of PA]

Bring a tape measure

OK, bring a tape measure with you to the dealer if your buying a vehicle that you want more than a 25,000 179 ded. on. The law gets tedious here.

[Bees Knees]

OK, bring a tape measure with you to the dealer if your buying a vehicle that you want more than a 25,000 179 ded. on. The law gets tedious here.

I think most standard pickup trucks have a cargo bed that can carry an 8 x 4 sheet of plywood. I know my mini van can if I take out the back seats.

It would have to be a very small pickup not to have at least a 6 foot bed.

[JoshinNC]

Just bought an '06 Silverado

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?

Cost a tad over $27,000 with sales tax and all the fees. Will be taking the $25,000 and capturing the remainder over the next 5 years.

[JoshinNC]

What if the truck has a sliding rear window?

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.

The cargo area would theoretically be accessible from the cab (don't think my fat butt would fit, but someone would).

[John of PA]

your right

yes your right

[Black Bart]

Lawyer's view

The cargo area would theoretically be accessible from the cab...

Your point is one that probably only a tax preparer would raise (I thought of it too, since lots of people here get sliding back-glass windows as an option). Surely though, not even a dirty, rotten, low-down, IRS lawyer-type would claim the bed's accessible because of a slider-window that can be crawled through.

**Note to Bees: Throw those removable seats away, bolt that piece of plywood up inside the minivan behind the front seat (don't cut a hole for a slider-window), strap lead weights up under the bumpers, and (if you bought it this year) you're in business.

I just went out and measured the interior of the bed of my son's compact Dodge truck -- it's 76 inches (that's 6 feet 4 inches for those of you who aren't accountants/tax preparers), so I'm assuming beds on the over 6K lb. Rams would be as big or bigger, qualifying them for exemption to the $25K ceiling.

[Black Bart]

Thanks much for the details, John

...The car's computer decides when to go into electric mode. ex: if your stopped at a stop sign, the gas engine will shut off by itself becase the compter decided you don't need the gas engine running.

I had an old Dodge that used to do this and it didn't even have a computer. It would automatically switch to "push" mode.

...plug in the car (110 outlet) overnight to top off the Hybrid batteries). If you do, you will get over 100 MPG the next day...

100 MPG? Good grief! No wonder Cheney and the boys at Exxon don't cotton to this idea.

[veritas]

30 mpg

Veritas, what kind of MPG are you getting on the Camry Hybrid?

It's not a hybrid. Has a strong 4cyl.

I don't think the Camry hybrid is worth the money.

[John of PA]

Old Dodge

Black Bart,
That old Dodge sounds really neat, what year was it? How did you re-start the engine from push mode? Did it re-start from a dead stop?

[Black Bart]

Hey, OI' shoe

It's not a hybrid. Has a strong 4cyl.

I don't think the Camry hybrid is worth the money.

Whatcha doin''?

I've never had a hybrid, but have a ten-year old Camry. Best car I ever had. Once had a warrantied window-roller go out; other than that it's been zero maintenance. Wish I could say the same for my Chevy.

Are you ridin' a hybrid bike nowadays?

[Black Bart]

The Pushmobile

Black Bart,
That old Dodge sounds really neat, what year was it?

I said Dodge, but actually I believe it was a Plymouth -- '51 model.

How did you re-start the engine from push mode?

Sorry John, but "push mode" was a joke (I thought you were older). These were "straight shift" (non-automatic transmission) cars. What you had to do was put your girlfriend behind the steering wheel; tell her to put it in second gear. turn the key on, and hold down the clutch. You and (hopefully) at least one buddy get behind and push. When you get up to about 10 miles per hour, holler and tell her to pop the clutch and give it the gas. It'll cough and start.

Did it re-start from a dead stop?

See above.