Tax Question

Discussion in 'Starting a Lawn Care Business' started by ToddS, Dec 5, 2003.

  1. ToddS

    ToddS LawnSite Member
    Posts: 58

    I was talking to my father in-law about my plans to start a lawn care business and he remembers reading somewhere about a gov't program that if you purchased a SUV for business purposes there was a tax advantage for doing this. He thought that the gov't actually paid for the SUV as long as it was for business purposes. If this is true, does anyone know anything about this program or the name of it? Is it still available for 2004? Any info would be helpful. Thanks

    ToddS
     
  2. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    I have not heard of this, but I am a little doubtful. I would think every LCO on here would be using an SUV for something though if the government was giving them out:confused:
    I would definitely love to be proven wrong though, so please share with us if you find something out! :drinkup:
     
  3. capmaint

    capmaint LawnSite Member
    Posts: 31

    ToddS,
    Im not really up to speed on this but the radio ads in Phoenix indicate the program may end at the end of the year and the rebates are for vehicles that weigh in excess of 6000 pounds...some of the Hummer dealers are using it as an advertising tactic.
     
  4. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Remember, if it sounds too good to be true, it probably is.

    I think you are referring to the depreciation write off. If the vehicle is used for business use it can be written off. Most SUVs will qualify for the section 179 expensing election, in other words you can write them off in total in the year you purchase them and place them in service for business use. The government is not paying for the SUV.

    You are getting a tax write off and saving money that way, but you still have to pay for the vehicle. And it is only deductible to the extent it is used for business. How many Hummers are used 100% for business use?

    Get professional advice on tax matters like this to keep you out of tax trouble.
     
  5. CSRA Landscaping

    CSRA Landscaping LawnSite Bronze Member
    Posts: 1,232

    Nah, there's actually a whole list of them. Not sure how current it is now, though. If you go to clarkhoward.com, you may find what you're looking for.
     
  6. wissel_landscaping

    wissel_landscaping LawnSite Senior Member
    from ohio
    Posts: 262

    i just heard on the radio if you buy a hummer for business purposes you can get a $35,000 tax deduction thats all i know about it.
     
  7. mowitup

    mowitup LawnSite Member
    Posts: 22

    HERE IS THE REAL SCOOP!!!

    It has to be in excess of 5,000 lbs. (Usually a Yukon, Navigator, etc.) My friend bought a Yukon and he got about $5000 back on his taxes this last year. Who on earth doing landscaping is going to buy that kind of a vehicle though? It's not practical. Maybe the president of a 100 employee operation.
     
  8. stslawncare

    stslawncare LawnSite Bronze Member
    from DE
    Posts: 1,484

    an suv can be a great a asset to a lawn care company. for example it can be an estimate vehicle, back up to even pull a trailer, put plow on it, foreman vehicle for bigger companies, used for getting shop supplies etc etc etc
     
  9. GlorifiedLawnBoy

    GlorifiedLawnBoy LawnSite Member
    Posts: 37

    New tax law signed by Bush for us truck buyers is this.
    Buy a truck or ANY vehicle for Business use after May 2003 and put it to use exclusively for Business and you can write it off 100%. Also you can even write off a personal vehicle you buy for personal and business use. You would figure how much of the time will be personal and business and that is the percentage of the write off. 30% personal 70% business = 70% tax write off. Also you must remember that this is a 179 expense and you can not go over $100,000 or over your actual taxable income for that year. Also this is only good for 2003, 2004, 2005, 2006 after which you won't be able to use this any more and things revert back to what the expense limits were last year I think it was $24,000.
     

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