I think I remember someone telling me that because of the vehicle's weight, the SC qualified for some type of tax deduction. Anyone out there who can help me out?

Thanks,

Marc

 

a post on that also, don't remember if it was on this site, had to do with corporate taxes and vehicles that weighed in excess of like 6000 lbs.

 

Does anyone out there know anything about this?? 100 views of this post and one reply?? Any help out there??

 

Hey Marc,

I read an article on the Hummer H2 being eligible for a tax break if it was used as a commercial vehicle. Like if you owned your business and that was your means of transport. The H2 falls into the 6000 lbs. loop hole. Orginally set up for farmers in the '80's to offset the cost of equipment.

They said that a person who buys a H2 can get back like $38k i think in taxes over the life of it, and $24k of the $38k as soon as they drive off the showroom floor.

If you fit into this, i would do it quickly cus the gov is going to try and change it quickly since so many vehicles fit this loose guideline.

 

Don't quote me - but I don't believe the SCrew qualified. I will see if I can find where I read it and post a link. I do know that one of the conditions was that the vehicle had to be used (and I think it was at least 50% of the time) for your business. Of course, this only applies if you own the business in question, not if you are an employee.

 

I found some links on this and it's "unloaded gross vehicle weight" not the curb weight. Meaning how much weight it can carry like a load. I think the SCREW is rated between 6200 and 6600 GVW

Your traditional automobile is considered a passenger vehicle, which has specific limitations on the depreciation and expense deductions that are allowed to be taken for them. A passenger vehicle is defined by Internal Revenue Code Section 280F(d)(5)(A) as any 4-wheeled vehicle (i) which is manufactured primarily for use on public streets, roads, and highways, and (ii) which is rated at 6,000 pounds unloaded gross vehicle weight or less. Internal Revenue Code Section 280F(d)(5)(B) states that in the case of a truck or van, clause (ii) shall be applied by substituting "gross vehicle weight" for "unloaded gross vehicle weight." Exception for certain vehicles. The term "passenger automobile" shall not include (i) any ambulance, hearse, or combination ambulance-hearse used by the taxpayer directly in a trade or business, (ii) any vehicle used by the taxpayer directly in the trade or business of transporting persons or property for compensation or hire, and (iii) under regulations, any truck or van.
http://evworld.com/databases/storybu...fm?storyid=343
http://www.usatoday.com/money/autos/...-20-suvs_x.htm
http://www.accounting-center.com/200...ssSeminar.html
http://news.cpamerica.org/gray2/taxt...icle.asp?a=340

Hope this helps...

 

very interesting...

 

You're looking for Section 179 of the Internal Revenue Code dealing with a $25k (for 2003) deduction for a vehicle used atleast 50% for your business that has a gross vehicle weight of over 6000lbs. Yes, the Screw qualifies. If you own your own business and use the Screw no less than 50% for your work, you can deduct up to $25k of its cost this year. In addition you get a "bonus" 30% deduction and the standard 20% deduction. Best of all, if you are married and file jointly, you can take the deduction even if the spouse who uses it does not make a profit that year. There are some criteria that have to be met (such as this cannot be a personal vehicle that you later use in your business), but if you think you might fall into this category, it would be worth talking to a tax professional about it.