On Tue, 13 Jul 2004 jbk[at]piasystems.com wrote:

- quote -

No. The correct IRC section is 179. It does not apply to SUV's specifically
but to ANY property acquired and placed in service during the year. There are
limits.

- quote -

Gross unladen weight. The manufacturer usually can provide this number.

The unladen weight in this case does include everything that typically comes
with the vehicle, so the spare tire, jack, and owner's manual count.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

<jbk[at]piasystems.com> wrote:

- quote -

You can take a section 179 (not 197) deeduction for the
business percentage of a car used over 50% for business.
If you buy that 100K Hummer and use it 60% for business
your deduction can exceed $60,000. While autos normally
have severe limits on how much you can deduct in a year,
those limits don't apply if the "gross vehicle weight" is over
6,000 pounds. That $100,000 limit drops back to
$25,000 after 2005. One other caveat - whatever vehicle
you use must still meet the test of an ordinary and necessary
business expense. Extravagant auto purchases can be
challenged even if it they are "business use." There are
several cases where, for example, a Rolls Royce as a
business auto was disallowed for failing the ordinary
and necessary test. If you're going to expense a 100K
car, you should have a pretty good argument that it's a
reasonable expenditure - better for the business than a
20K to 30K car.

- quote -

For trucks and vans the gross vehicle weight is the gross
loaded weight.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I understand that one can take a Sec. 197 deduction up to
$100,000 for a SUV or truck used for 50% or more in a
business as long as the weight exceeds 6,000 pounds. I have
two questions:

1. is this correct?

2. how is the weight calculated for this purpose: the gross
weight or the curb weight?

Thanks for any help.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->