SUV Tax Deduction – Buy a Hummer!

There’s a loophole for vehicles like Hummers, and it’s huge. You can qualify for a $25,000 write-off if you purchased a vehicle weighing over 6,000 pounds and used it in your business. If your vehicle is a pickup with a bed length of over 6 feet, the limit is even higher, and you may be able to deduct the entire expense of the vehicle in the first year.

To be eligible for the Section 179 deduction, the vehicle must be used at least 50% for business in the first year it is placed in service, and the cost eligible for the deduction is dependent on your business usage percentage. The $25,000 limit applies to 6,000 pound trucks with bed lengths under 6 feet, and it gets expensed as a Section 179 Deduction, reported on Form 4562.

On top of the huge tax break, you’re also entitled to a short, five year depreciation schedule. No wonder why everyone these days is buying an SUV.

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This entry was posted on Monday, December 1st, 2008 at 1:23 am and is filed under Schedule E. You can follow any responses to this entry through the RSS 2.0 feed.