Tip Of The Day - 11/22/05 - Large Vehicle Tax Break

[Sean Adams]

I will have to check and see when this tax break is over (might be the end of this year 2005) but for those of you who are not familiar....

Changes to Section 179, commonly called the SUV Tax Deduction, expanded this popular tax break from $25,000 to $100,000 and lifted depreciation schedules. This combination of factors effectively allows anyone who uses a vehicle in their business at least 50% of the time to buy the biggest and most expensive SUV/Truck and write it off in one year.

I would have to double check but I think any vehicle purchased that has a GVW (gross vehicle weight) over 6,000 lbs applies - short answer...if you are looking for a very nice tax write off and you have or will be purchasing a vehicle this year (not lease) you can write off 100% of the purchase value of the vehicle this year.

Here is a link to a description of section 179

http://www.selfemployedweb.com/section-179.htm