jobycom
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Thu Aug-04-05 02:53 PM
Original message |
Alright, someone explain the SUV tax refund to me |
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I thought it was just for businesses, but one of the Air America shows yesterday said that it was for any large SUV, and you can write off the full amount of the vehicle (as a deduction, not a tax credit). That can't be right, can it?
If so, how many large diesel SUVs are there? I'd love to get a tax credit on an SUV and convert it to run on veggie oil. Just to piss off the oil companies. (Not that I can afford a new SUV right now, but the thought is fun.)
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Fescue4u
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Thu Aug-04-05 03:00 PM
Response to Original message |
1. Its just for business's |
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The original idea was to not allow business to writeoff the entire cost of a car in one year.
It was meant to stop companies from giving out cars to executives, upper management every year as an alternative form of compensation. I.e. it was designed to eliminate a tax loophole. This was passed in the late 70's I beieve.
But there was an exception written in for vehicles over a gross weight. This exception was there to allow dump trucks, and other large "work trucks" the continued tax advantage and not to penalize those businesses...especially since nobody buys large trucks to commute in, as they are a business necessity (to certain businesses)
i.e. the law is designed to only penalize business use of a "normal auto" masquerading as a company car as a way to avoid personal income tax on upper management.
Fast forward to the 2005 and SUV's routinely weigh 3 tons or more. Now business luxury SUV's receive the tax advantage denied to fuel efficient vehicles. What was a penality for luxury company vehicles is now an incentive!!!
Its the law of unintended consequences.
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jobycom
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Thu Aug-04-05 03:26 PM
Response to Reply #1 |
2. Thanks. So Franken's story the other day |
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About a guy who bought an SUV instead of a sedan because of the tax break had to be a company vehicle? That fits with what I thought I knew. Thanks.
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WCGreen
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Thu Aug-04-05 03:31 PM
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3. It's completly true... |
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I play an accountant in the real world....
But is wansn't an unintended consequence....
They saw the problem before the law was passed and still ignored it...
The SUV large capacity pick up truck is the money maker for the big three.....
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jobycom
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Thu Aug-04-05 03:36 PM
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4. But it has to be a business write off? |
WCGreen
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Thu Aug-04-05 03:44 PM
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5. Yes. A lot of small businesses took advatage of it.... |
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It stops the income as well as the FICA small business mught owe
Sole proprietors, like plumbers or small contractors
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jobycom
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Thu Aug-04-05 04:01 PM
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6. So, if I start free-lance writing |
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and need a 3 ton SUV to haul my laptop and camera around, can I write it off? Assuming I create the proper trail to prove it's a business and not a hobby?
Not saying I'd do that, just wondering the scope of the tax break.
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WCGreen
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Thu Aug-04-05 06:46 PM
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But you would have to document....
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Initech
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Thu Aug-04-05 06:47 PM
Response to Original message |
8. Interesting, I had no idea about this law. |
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And my dad just bought a new MDX, too! Hmmmmmmmmmm...
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DU
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Wed Apr 24th 2024, 01:07 AM
Response to Original message |