Suv, Truck Owners-What if?

[tmt martins]

I love my "Baby Hummer", but you'll only get 5 passengers in the H3.

Great and the 5 passengers is not a problem It's just me DW & DD so 2 friends is enough.I just get a good deal on the Jeeps so if I was going to get another one is will be the Commander.

I've driven a H2 on a closed course and have sat in the H3 it's just better from someones opion on actual use

THANKS

 

[MouseWorshipin]

OK...well, let's mention the "tax loophole", eh?

If you buy a BIG suv, certain wt., you can write it off if you use it for your business. So what is that???

Do you have any idea the amount of taxes small business owners pay? It is astronomical. The "loophole" for a vehicle is a drop in the bucket.

 

[The Mystery Machine]

I am NOT speaking about "business owners"....I am speaking about REGULAR people that are ripping off our government right now.
There is some kind of loophole that allows you to exploit the business deduction.

 

[Keli]

Yeah!


I specifically don't like the death tax. I earned the money. I paid taxes on the money. Why should it be taxed again? Just because I'm dead doesn't mean I don't know my money is being taxed twice.

While I wholeheartedly agree with you this quote made me LOL!

 

[MouseWorshipin]

I am NOT speaking about "business owners"....I am speaking about REGULAR people that are ripping off our government right now.
There is some kind of loophole that allows you to exploit the business deduction.

The loophole is for business owners. You have to have an EIN and file and all that. And it has to be a really big car, not just an Explorer or something. We do use our SUVs sometimes to haul stuff around, and get no deduction for it.

The people who are able to get this "loophole" are paying out thousands, sometimes tens and hundreds of thousands of dollars to get it.

 

[AllyandJack]

I am NOT speaking about "business owners"....I am speaking about REGULAR people that are ripping off our government right now.
There is some kind of loophole that allows you to exploit the business deduction.

Well, if you find it let me know because, from the research I did on irs.gov, this is what I found:

From I can see it's a Section 179 depreciation allowance. All cars can get it, but the amount goes up as the price of the vehicle goes up (duh). The law states that SUVs that are sold primarily for use on public streets, etc. (used for business purposes to offset BUSINESS taxes, not PERSONAL taxes), are maxed out at the amount they can claim, while vehicles that can, say, hold 9 passengers or vehicles that have been modified to qualify as a non-personal use vehicle, or vehicles with a certain amount of cargo space don't have the limitation on how much they can claim in depreciation.

I presume the new law was put into effect so people don't buy $50,000 Mercedes SUVs and claim it all on their business taxes as a 179 (which applies to more than just cars). It doesn't appear the law was put into effect as a loophole, but merely to make sure that people with EXPENSIVE SUVs, pick-ups and vans that can be used primarily for personal use (thus they have to qualify as non-personal use to claim the full amount) don't get a $50,000 deduction.

All business vehicles can take this depreciation deduction, but they needed some way to make sure people don't buy super-expensive, mammoth cars to off-set their tax burden with a care that is generally used for personal used.

I probably couldn't take the personal deduction anyway since I get whacked with the AMT every year. See....yet another scam in the system.

 

[tmt martins]

I am NOT speaking about "business owners"....I am speaking about REGULAR people that are ripping off our government right now.
There is some kind of loophole that allows you to exploit the business deduction.

I don't think they are ripping off anyone .I know they write these loopholes into laws to let them and friends get the tax breaks as most people don't know about them.

Just close the loophole and this will go away.

The realitiy is when I get taxed on the income ,then taxed on a purchase,then taxed on my savings (or tax return) ,Then so they can say their not rasing taxes they call it a fee.I only end up with about 62% of my earnings from the year 2004 when I really kept track of things .

 

[DaisyD]

We'd just pay the tax. My DH had a hummer at one point and was actually able to right it off on our taxes as it fell under the work truck cat because of it's weight. I doubt they ever tax them if they are now giving tax breaks for them in certain circumstances. We already pay taxes for stuff we don't use to what is the big deal in paying taxes for what we do use.

 

[AllyandJack]

With passage of the Jobs and Growth Act, Congress dramatically expanded the already generous SUV loophole by raising the deduction ceiling for certain purchases-including SUVs-from $25,000 to $100,000.7 Under this new rule, the entire cost of all but one large SUV-the Hummer H1-can be deducted. This act also increased the "bonus deduction" from 30% to 50%, which businesses can utilize in the first year of purchase on the amount above the initial deduction.

OK, it's "certain purchases, including SUVs", not just SUVs. The Hummer H1 can't be deducted. And it clearly says it's a business deduction. This information is from taxpayer.net. So, if someone is taking this deduction on their personal taxes, they should be audited and fined. Simple as that. Why bother the businesses that were the entire purpose of the original law?

 

[noodles]

Well until they came out with a car that can tow a race trailer, I guess we'd be paying taxes with the rest of them.

Thats exactly what I was going to say! We need to get to the race site and the only way to get the equipment there is towing it behind a truck or SUV.

 

[Jen_in_NH]

Until they find a way of putting a 250 gallon tank and a small pump in a car for maple sugaring, I guess I'll keep the truck Besides, living on a back road in NH, something 4wd and large enough to clear the spring ruts and mud is a necessity.

Jen

 

[horseshowmom]

Well until they came out with a car that can tow a race trailer, I guess we'd be paying taxes with the rest of them.

Same thing here except a horse trailer. We show horses, trail ride, and participate in other horse related activities. We drive a Ford F-250 4 door 4WD diesel and get 20 mpg (when not pulling the trailer). The truck is part of our lifestyle and gets what we feel is a very reasonable mpg.