Drew Edmundson wrote:
- quote -

And to cinch it, a technical corrections bill by congress.
But probably not before next year after confusion has made
it "Verrrry Interesting!" (Arte Johnson)

ChEAr$,
Harlan Lunsford, EA n LA

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Harlan Lunsford <hlunsford[at]bellsouth.net> wrote:
- quote -

Yes, that is the way I am reading it. If we read "any" as
"all" then it would seem logical to read "any" that way
before the word "year." So are you saying that the limit is
$25,000 for SUV's for the life of 179(b)(6)(A)? Of course
not.

I guess we will have to wait and see as the committee
reports, BNA and CCH are no help on this matter.

--
Drew Edmundson

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"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote:
- quote -

I'm with Drew on this one. Certainly it would have been
written as "all" if that was the intent.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Drew Edmundson wrote:

- quote -

This is most interesting. IOW, you're saying that the
phrase "any sport utility vehicle" means in effect "each"?

I don't think that'll fly when instructions for the 4562 for
vehicles bought after that certain enactment date come out.
We'll see.

ChEAr$,
Harlan Lunsford, EA n LA
Mon, 8 Nov 2004 20:18:13

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John Smith <theavatar007[at]earthlink.net> wrote:

- quote -

The $25,000 limit is per vehicle. So, for example, you can
buy two SUVs (assuming they meet the definition of
179(b)(6)(B) and the requirements for business use) then you
can deduct $25,000 for each SUV.

See:

179(b)(6)(A) IN GENERAL. --The cost of any sport utility
vehicle for any taxable year which may be taken into account
under this section shall not exceed $25,000.

Note the phrase is "any sport utility vehicle" not "all
sports utility vehicles."

Also some vehicles over 6,000 lbs and no more than 14,000
lbs are exempt from this limit. See 179(b)(6)(B)(ii) -

CERTAIN VEHICLES EXCLUDED. --Such term does not include any
vehicle which --

(I) is designed to have a seating capacity of more than 9
persons behind the driver's seat,

(II) is equipped with a cargo area of at least 6 feet in
interior length which is an open area or is designed for use
as an open area but is enclosed by a cap and is not readily
accessible directly from the passenger compartment, or

(III) has an integral enclosure, fully enclosing the driver
compartment and load carrying device, does not have seating
rearward of the driver's seat, and has no body section
protruding more than 30 inches ahead of the leading edge of
the windshield.

II should exempt most (perhaps all) pickups.

--
Drew Edmundson

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John Smith <theavatar007[at]earthlink.net> wrote:

- quote -

$25000 max no matter how many SUV's you buy. However, if
your business also purchased equipment for $75000 you can
write off the equipment and SUV for a total Sec 179
deduction of $100,000.

R.A. Moore, EA

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John Smith wrote:

- quote -

Perhaps you omitted a lot of information, but basically the
179 deduction is "owner" specific, i.e. to a person, whether
that person be individual, husband and wife (joint return)
or a corporation.

Don't forget also, in case you're a proprietor, you must
allocate between business and personal use of the
vehicle(s).

ChEAr$,
Harlan Lunsford, EA n LA
Thu, 4 Nov 2004 10:16:12

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"John Smith" <theavatar007[at]earthlink.net> wrote

- quote -

I haven't seen the new law in detail, but Section 179 is
limited "per taxpayer", so I suspect the $25K is a "per
taxpayer" limit, not a per vehicle limit.

That could mean that an "S" corporation you own 100% can
take $25K, and an LLC you own 100% can take $25K, but ~you~
can only take $25K as it is limited per taxpayer.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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Is the new $25,000 cap on the Sec. 179 deduction vehicle
specific?

In other words, could I purchase two SUVs over 6000 lbs, use
both of them for business purposes, and then deduct a total
of $50000 -- $25000 for each vehicle? Or is it $25000 total
deduction per business?

Thanks

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