SUV Loophole, Hummer Loophole Section 179

[takotsubo]

Just learned about the loophole from a colleague. I'm an independent contractor.

Can someone explain this loophole to me. Has anyone taken advantage of this and are there are tidbits or exceptions I need to know about. Pros and cons about it?

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[ThoracicGuy]

Just learned about the loophole from a colleague. I'm an independent contractor.

Can someone explain this loophole to me. Has anyone taken advantage of this and are there are tidbits or exceptions I need to know about. Pros and cons about it?

Will you be using the vehicle solely for your job and for minimal to no personal use?

This sounds like a good way to get alot of paperwork and risks of an audit.

 

[keifernny2]

It's not quite that dire, but it really does depend on what you're using the vehicle for (business vs. personal use). This determination is based on Mileage (which you'll need to keep track of).

Option 2 is for your business to lease the vehicle, which is a bit less complicated though still has some paperwork involved.

If you have an accountant, this is a good question to ask them.

 

[TexasPhysician]

It's worked fine for me.