Tax Deduction For Hummer?
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
>It applies to ALL vehicles!
Yes and no. While it is true that any vehicle used for business qualifies for
a tax deduction, there are special rules, and a greater depreciation deduction,
for business vehicles weighing more than 6,000 lbs.
Robert Bills
KG6LMV
Orange County CA
http://www.outdoorwire.com/4x4/jeep/...p-l/billsr.htm
http://www.RobertBills.com
Yes and no. While it is true that any vehicle used for business qualifies for
a tax deduction, there are special rules, and a greater depreciation deduction,
for business vehicles weighing more than 6,000 lbs.
Robert Bills
KG6LMV
Orange County CA
http://www.outdoorwire.com/4x4/jeep/...p-l/billsr.htm
http://www.RobertBills.com
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
"Paul Brogren" <pibrogren@msn.com> wrote in message news:<blao28$a0a28$1@ID-190695.news.uni-berlin.de>...
> I just got done watching a program on Discovery Times Channel. The program
> gave the insight on the new Nissan Titan, Ford F150, and Hummer H2 and 1.
> At the end of the show, the people that were in the Milwaukee, WI. Hummer
> Stealership said that one reason they could afford this H2 was because they
> could deduct 3/4's of the purchase price off their upcoming taxes. The
> elgibilty was because they are a business owner and purchased a "Heavy
> Weight" truck. I have never heard of this. Anyone else? I still will
> never buy one!.
Businesses can accellerate the depreciation they take on a 6000+ GVWR
vehicle. It was originally intended for farming pickups and
Suburbans, etc. but now a alot of luxury SUVs meet the criteria.
> I just got done watching a program on Discovery Times Channel. The program
> gave the insight on the new Nissan Titan, Ford F150, and Hummer H2 and 1.
> At the end of the show, the people that were in the Milwaukee, WI. Hummer
> Stealership said that one reason they could afford this H2 was because they
> could deduct 3/4's of the purchase price off their upcoming taxes. The
> elgibilty was because they are a business owner and purchased a "Heavy
> Weight" truck. I have never heard of this. Anyone else? I still will
> never buy one!.
Businesses can accellerate the depreciation they take on a 6000+ GVWR
vehicle. It was originally intended for farming pickups and
Suburbans, etc. but now a alot of luxury SUVs meet the criteria.
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
"Paul Brogren" <pibrogren@msn.com> wrote in message news:<blao28$a0a28$1@ID-190695.news.uni-berlin.de>...
> I just got done watching a program on Discovery Times Channel. The program
> gave the insight on the new Nissan Titan, Ford F150, and Hummer H2 and 1.
> At the end of the show, the people that were in the Milwaukee, WI. Hummer
> Stealership said that one reason they could afford this H2 was because they
> could deduct 3/4's of the purchase price off their upcoming taxes. The
> elgibilty was because they are a business owner and purchased a "Heavy
> Weight" truck. I have never heard of this. Anyone else? I still will
> never buy one!.
Businesses can accellerate the depreciation they take on a 6000+ GVWR
vehicle. It was originally intended for farming pickups and
Suburbans, etc. but now a alot of luxury SUVs meet the criteria.
> I just got done watching a program on Discovery Times Channel. The program
> gave the insight on the new Nissan Titan, Ford F150, and Hummer H2 and 1.
> At the end of the show, the people that were in the Milwaukee, WI. Hummer
> Stealership said that one reason they could afford this H2 was because they
> could deduct 3/4's of the purchase price off their upcoming taxes. The
> elgibilty was because they are a business owner and purchased a "Heavy
> Weight" truck. I have never heard of this. Anyone else? I still will
> never buy one!.
Businesses can accellerate the depreciation they take on a 6000+ GVWR
vehicle. It was originally intended for farming pickups and
Suburbans, etc. but now a alot of luxury SUVs meet the criteria.
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
Approximately 9/30/03 07:35, RichH uttered for posterity:
> It applies to ALL vehicles!
Yup, whether as a business owner or an employee. And if
the job/business has special requirements that can be
justified to the IRS vampires, you can buy a vehicle
appropriate. e.g. a mining engineer with a nice GC, a
public livery with an expensive limo, etc. Dunno if
they will allow pimps to deduct the full cost of "necessary
life style" vehicles.
> If you use the vehicle for business purposes the cost of operation, etc.
> is deductible either by direct cost OR by a flat rate of ~ $.33/mi.,
> whichever is greater.
You can do this for your personal vehicle even if you work for
someone else, use it in a job related move, use it to look for
work, etc. etc. And if you get a vehicle allowance that is less
than the IRS allows, you can claim the difference as a deduct
if you claim the allowance as income. Often worth it if your
employer doesn't match the IRS rate. Restricted to travel that
is not part of normal office commute, nor can your employer pay
you for normal office commute without making that part as normal
income.
> The pain in the *** if you also use it for personal use is that you
> must keep a 'contemporaneous log' of personal vs. business usage ...
> keeping accurate records to keep the two 'accounts' separate.
Yeah. The IRS started cracking down on this in the mid 70's
if memory serves. All of a sudden, companies who provided their
employees with full use company cars had to begin figuring out
ways around this without ticking off the employees. Some did
it by charging a fixed monthly fee for the car, others did it
by requiring that the cars be parked at an office, etc. etc.
Then they moved to giving you an IRS form declaring the fair
value for allowing the car to be kept at home and used for
personal use.
> It applies to ALL vehicles!
Yup, whether as a business owner or an employee. And if
the job/business has special requirements that can be
justified to the IRS vampires, you can buy a vehicle
appropriate. e.g. a mining engineer with a nice GC, a
public livery with an expensive limo, etc. Dunno if
they will allow pimps to deduct the full cost of "necessary
life style" vehicles.
> If you use the vehicle for business purposes the cost of operation, etc.
> is deductible either by direct cost OR by a flat rate of ~ $.33/mi.,
> whichever is greater.
You can do this for your personal vehicle even if you work for
someone else, use it in a job related move, use it to look for
work, etc. etc. And if you get a vehicle allowance that is less
than the IRS allows, you can claim the difference as a deduct
if you claim the allowance as income. Often worth it if your
employer doesn't match the IRS rate. Restricted to travel that
is not part of normal office commute, nor can your employer pay
you for normal office commute without making that part as normal
income.
> The pain in the *** if you also use it for personal use is that you
> must keep a 'contemporaneous log' of personal vs. business usage ...
> keeping accurate records to keep the two 'accounts' separate.
Yeah. The IRS started cracking down on this in the mid 70's
if memory serves. All of a sudden, companies who provided their
employees with full use company cars had to begin figuring out
ways around this without ticking off the employees. Some did
it by charging a fixed monthly fee for the car, others did it
by requiring that the cars be parked at an office, etc. etc.
Then they moved to giving you an IRS form declaring the fair
value for allowing the car to be kept at home and used for
personal use.
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
Approximately 9/30/03 07:35, RichH uttered for posterity:
> It applies to ALL vehicles!
Yup, whether as a business owner or an employee. And if
the job/business has special requirements that can be
justified to the IRS vampires, you can buy a vehicle
appropriate. e.g. a mining engineer with a nice GC, a
public livery with an expensive limo, etc. Dunno if
they will allow pimps to deduct the full cost of "necessary
life style" vehicles.
> If you use the vehicle for business purposes the cost of operation, etc.
> is deductible either by direct cost OR by a flat rate of ~ $.33/mi.,
> whichever is greater.
You can do this for your personal vehicle even if you work for
someone else, use it in a job related move, use it to look for
work, etc. etc. And if you get a vehicle allowance that is less
than the IRS allows, you can claim the difference as a deduct
if you claim the allowance as income. Often worth it if your
employer doesn't match the IRS rate. Restricted to travel that
is not part of normal office commute, nor can your employer pay
you for normal office commute without making that part as normal
income.
> The pain in the *** if you also use it for personal use is that you
> must keep a 'contemporaneous log' of personal vs. business usage ...
> keeping accurate records to keep the two 'accounts' separate.
Yeah. The IRS started cracking down on this in the mid 70's
if memory serves. All of a sudden, companies who provided their
employees with full use company cars had to begin figuring out
ways around this without ticking off the employees. Some did
it by charging a fixed monthly fee for the car, others did it
by requiring that the cars be parked at an office, etc. etc.
Then they moved to giving you an IRS form declaring the fair
value for allowing the car to be kept at home and used for
personal use.
> It applies to ALL vehicles!
Yup, whether as a business owner or an employee. And if
the job/business has special requirements that can be
justified to the IRS vampires, you can buy a vehicle
appropriate. e.g. a mining engineer with a nice GC, a
public livery with an expensive limo, etc. Dunno if
they will allow pimps to deduct the full cost of "necessary
life style" vehicles.
> If you use the vehicle for business purposes the cost of operation, etc.
> is deductible either by direct cost OR by a flat rate of ~ $.33/mi.,
> whichever is greater.
You can do this for your personal vehicle even if you work for
someone else, use it in a job related move, use it to look for
work, etc. etc. And if you get a vehicle allowance that is less
than the IRS allows, you can claim the difference as a deduct
if you claim the allowance as income. Often worth it if your
employer doesn't match the IRS rate. Restricted to travel that
is not part of normal office commute, nor can your employer pay
you for normal office commute without making that part as normal
income.
> The pain in the *** if you also use it for personal use is that you
> must keep a 'contemporaneous log' of personal vs. business usage ...
> keeping accurate records to keep the two 'accounts' separate.
Yeah. The IRS started cracking down on this in the mid 70's
if memory serves. All of a sudden, companies who provided their
employees with full use company cars had to begin figuring out
ways around this without ticking off the employees. Some did
it by charging a fixed monthly fee for the car, others did it
by requiring that the cars be parked at an office, etc. etc.
Then they moved to giving you an IRS form declaring the fair
value for allowing the car to be kept at home and used for
personal use.
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
To the OP: Don't overlook the word "business" in these responses. In
addition to weighing 6000 lbs, it has to be used substantially as a
business vehicle. If dual use, you can only write off the portion of
the vehicle that is applicable to business.
In other words, no hauling the family around to church and soccer
practice and expecting to get a big tax break because you bought a
Hummer! (Of course, if you are creative, you could probably fudge
somewhat and "convert" those family miles to business miles, but I
refer you to our discussion under the "Towing" post regarding what is
physically possible vs. what is precisely legal.)
> >It applies to ALL vehicles!
>
> Yes and no. While it is true that any vehicle used for business qualifies for
> a tax deduction, there are special rules, and a greater depreciation deduction,
> for business vehicles weighing more than 6,000 lbs.
>
addition to weighing 6000 lbs, it has to be used substantially as a
business vehicle. If dual use, you can only write off the portion of
the vehicle that is applicable to business.
In other words, no hauling the family around to church and soccer
practice and expecting to get a big tax break because you bought a
Hummer! (Of course, if you are creative, you could probably fudge
somewhat and "convert" those family miles to business miles, but I
refer you to our discussion under the "Towing" post regarding what is
physically possible vs. what is precisely legal.)
> >It applies to ALL vehicles!
>
> Yes and no. While it is true that any vehicle used for business qualifies for
> a tax deduction, there are special rules, and a greater depreciation deduction,
> for business vehicles weighing more than 6,000 lbs.
>
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
To the OP: Don't overlook the word "business" in these responses. In
addition to weighing 6000 lbs, it has to be used substantially as a
business vehicle. If dual use, you can only write off the portion of
the vehicle that is applicable to business.
In other words, no hauling the family around to church and soccer
practice and expecting to get a big tax break because you bought a
Hummer! (Of course, if you are creative, you could probably fudge
somewhat and "convert" those family miles to business miles, but I
refer you to our discussion under the "Towing" post regarding what is
physically possible vs. what is precisely legal.)
> >It applies to ALL vehicles!
>
> Yes and no. While it is true that any vehicle used for business qualifies for
> a tax deduction, there are special rules, and a greater depreciation deduction,
> for business vehicles weighing more than 6,000 lbs.
>
addition to weighing 6000 lbs, it has to be used substantially as a
business vehicle. If dual use, you can only write off the portion of
the vehicle that is applicable to business.
In other words, no hauling the family around to church and soccer
practice and expecting to get a big tax break because you bought a
Hummer! (Of course, if you are creative, you could probably fudge
somewhat and "convert" those family miles to business miles, but I
refer you to our discussion under the "Towing" post regarding what is
physically possible vs. what is precisely legal.)
> >It applies to ALL vehicles!
>
> Yes and no. While it is true that any vehicle used for business qualifies for
> a tax deduction, there are special rules, and a greater depreciation deduction,
> for business vehicles weighing more than 6,000 lbs.
>
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
Joshua Nelson pontificated:
>Don't overlook the word "business" in these responses. <bla, bla, bla . . .>
I see that you are good at rehashing information that has already been posted
to this thread.
Does your babysitter know you are using the computer?
Robert Bills
KG6LMV
Orange County CA
http://www.outdoorwire.com/4x4/jeep/...p-l/billsr.htm
http://www.RobertBills.com
>Don't overlook the word "business" in these responses. <bla, bla, bla . . .>
I see that you are good at rehashing information that has already been posted
to this thread.
Does your babysitter know you are using the computer?
Robert Bills
KG6LMV
Orange County CA
http://www.outdoorwire.com/4x4/jeep/...p-l/billsr.htm
http://www.RobertBills.com
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
Joshua Nelson pontificated:
>Don't overlook the word "business" in these responses. <bla, bla, bla . . .>
I see that you are good at rehashing information that has already been posted
to this thread.
Does your babysitter know you are using the computer?
Robert Bills
KG6LMV
Orange County CA
http://www.outdoorwire.com/4x4/jeep/...p-l/billsr.htm
http://www.RobertBills.com
>Don't overlook the word "business" in these responses. <bla, bla, bla . . .>
I see that you are good at rehashing information that has already been posted
to this thread.
Does your babysitter know you are using the computer?
Robert Bills
KG6LMV
Orange County CA
http://www.outdoorwire.com/4x4/jeep/...p-l/billsr.htm
http://www.RobertBills.com
Guest
Posts: n/a
Re: Tax Deduction For Hummer?
Remember, a tax deduction only reduces your taxable income. Therefore, the true
value of a deduction depends on what tax bracket you are in (10%, 15%, etc).
Also, if you reduce your taxable income to the point where you don't owe any
tax, you just kissed your non-refundable tax credits good-bye, like day care
credit, child tax credit, and both education credits (hope/lifetime).
all that glitters isn't gold.....stick with jeep ;)
Paul Brogren wrote:
> I just got done watching a program on Discovery Times Channel. The program
> gave the insight on the new Nissan Titan, Ford F150, and Hummer H2 and 1.
> At the end of the show, the people that were in the Milwaukee, WI. Hummer
> Stealership said that one reason they could afford this H2 was because they
> could deduct 3/4's of the purchase price off their upcoming taxes. The
> elgibilty was because they are a business owner and purchased a "Heavy
> Weight" truck. I have never heard of this. Anyone else? I still will
> never buy one!.
>
> --
> Thanks Always !!!
> Paul '75 CJ5 258
> Vail, CO.
value of a deduction depends on what tax bracket you are in (10%, 15%, etc).
Also, if you reduce your taxable income to the point where you don't owe any
tax, you just kissed your non-refundable tax credits good-bye, like day care
credit, child tax credit, and both education credits (hope/lifetime).
all that glitters isn't gold.....stick with jeep ;)
Paul Brogren wrote:
> I just got done watching a program on Discovery Times Channel. The program
> gave the insight on the new Nissan Titan, Ford F150, and Hummer H2 and 1.
> At the end of the show, the people that were in the Milwaukee, WI. Hummer
> Stealership said that one reason they could afford this H2 was because they
> could deduct 3/4's of the purchase price off their upcoming taxes. The
> elgibilty was because they are a business owner and purchased a "Heavy
> Weight" truck. I have never heard of this. Anyone else? I still will
> never buy one!.
>
> --
> Thanks Always !!!
> Paul '75 CJ5 258
> Vail, CO.