SUV tax loophole closing?

[panetrain]

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Is the SUV tax loophole closing at the end of this year? I can't seem to find a definite answer? Is there a chance that a bill will extend this tax deduction beyond 2011 for business owners? I'm about to pull the trigger on a G550. Thanks.

 

[periopdoc]

Yep, unless we get another "jobs creation" bill that renews it. Pull the trigger before the end of the year.

-pod

 

[MTGas2B]

What is the SUV tax loophole? I'm buying an SUV this year, and maybe starting an LLC to do some moonlighting, although I won't be working by the end of the calendar year.

 

[Ketafol20]

Dude I hope you are getting a used one. Do you plan to take it off road? If so, then I'd highly recommend a land rover/range rover. Nothing compares! But for the price of these vehicles it is insane to really take them off road in any arena other than a fire road. And if you are not plan ingot go off road then why get this vehicle?

 

[panetrain]

I've got my sights on a 2011 G550 Blk/Gry (looking to buy new in order to take full advantage of the factory warrantee). I do agree that for off road, land rover is a better product. I already have a range rover and have owned other land rover products so I'm looking for an upgrade. No other SUV on the road has the presence that the G series (AMG G55, G550, G500) commands. The G's have superior resell value and are relatively easy to unload used due the limited number produced. The G's have swagger, I'm planning on black powder coated wheels, blacked out lights and tinted windows. This vehicle will never leave pavement. It was truly intended for urban display and valeting at trendy bars, restaurants and clubs. The price is high, but I'm a true car devotee and have spent much more than this on a car in the past.

Dude I hope you are getting a used one. Do you plan to take it off road? If so, then I'd highly recommend a land rover/range rover. Nothing compares! But for the price of these vehicles it is insane to really take them off road in any arena other than a fire road. And if you are not plan ingot go off road then why get this vehicle?

 

[panetrain]

The SUV tax loophole, passed in 2004, allows small business owners including incorporated physicians to deduct the price of an SUV over 6000 lbs up to $25,000 (you can then depreciate the remaining costs of the vehicle up to 100% of the total cost of the vehicle) if the vehicle is used for business purposes at least 50% of the time. Most full size SUV's meet this weight requirement. You will only be able to deduct the cost of this SUV from the income your corporation generates in 2011. Thus, if your corporation has zero earnings for 2011 you will have zero taxes to deduct from. Sounds like your going to miss out on this one.

What is the SUV tax loophole? I'm buying an SUV this year, and maybe starting an LLC to do some moonlighting, although I won't be working by the end of the calendar year.

 

[aneftp]

This is your answer for the section 179 business deductions.

http://www.section179.org/section_179_vehicle_deductions.html

Personally I brought a used Hummer h3 (v8 model). Gm didn't make many of the v8 H3. Got it for firesale process of $28000 fully loaded at beginning of 2009. So I got to write off entire amount. And best of all it it only had 3000 miles and over 3 years warranty.

Find used SUV with low miles still under warranty which weighs over 6000 pounds is you best way to use the current section 179 deduction.

 

[panetrain]

Currently there is a 100% first-year writeoff for heavy SUVs. Under the 2010 Tax Relief Act, the bonus first-year depreciation percentage is 100% (instead of 50%) for bonus-depreciation-eligible “qualified property” that is generally (1) placed in service after Sept. 8, 2010 and before Jan. 1, 2012, and (2) acquired by the taxpayer after Sept. 8, 2010 and before Jan. 1, 2012. Qualified property includes property to which MACRS applies with a recovery period of 20 years or less. Autos and trucks are 5-year MACRS property and thus qualify for bonus depreciation QUOTE=aneftp;11562511]This is your answer for the section 179 business deductions.

http://www.section179.org/section_179_vehicle_deductions.html

Personally I brought a used Hummer h3 (v8 model). Gm didn't make many of the v8 H3. Got it for firesale process of $28000 fully loaded at beginning of 2009. So I got to write off entire amount. And best of all it it only had 3000 miles and over 3 years warranty.

Find used SUV with low miles still under warranty which weighs over 6000 pounds is you best way to use the current section 179 deduction.[/QUOTE]

 

[Ketafol20]

I've got my sights on a 2011 G550 Blk/Gry (looking to buy new in order to take full advantage of the factory warrantee). I do agree that for off road, land rover is a better product. I already have a range rover and have owned other land rover products so I'm looking for an upgrade. No other SUV on the road has the presence that the G series (AMG G55, G550, G500) commands. The G's have superior resell value and are relatively easy to unload used due the limited number produced. The G's have swagger, I'm planning on black powder coated wheels, blacked out lights and tinted windows. This vehicle will never leave pavement. It was truly intended for urban display and valeting at trendy bars, restaurants and clubs. The price is high, but I'm a true car devotee and have spent much more than this on a car in the past.

Do you Rap as well?

 

[Ketafol20]

I've got my sights on a 2011 G550 Blk/Gry (looking to buy new in order to take full advantage of the factory warrantee). I do agree that for off road, land rover is a better product. I already have a range rover and have owned other land rover products so I'm looking for an upgrade. No other SUV on the road has the presence that the G series (AMG G55, G550, G500) commands. The G's have superior resell value and are relatively easy to unload used due the limited number produced. The G's have swagger, I'm planning on black powder coated wheels, blacked out lights and tinted windows. This vehicle will never leave pavement. It was truly intended for urban display and valeting at trendy bars, restaurants and clubs. The price is high, but I'm a true car devotee and have spent much more than this on a car in the past.

Do you Rap as well?

​

 

[Ketafol20]

This is my idea of an SUV.

http://www.expeditionswest.com/vehi...ON30/699445_1262585_4268_2845_08c1392_002.jpg

 

[periopdoc]

At first I thought he had really hit the big time and was ordering one of these G550's

-pod

 

[periopdoc]

Think my new rig will qualify?

This one isn't mine, but it looks pretty much just like the one I am negotiating on.

Of course since it has a >6.5 foot bed it doesn't matter... I don't need the loophole.

- pod

 

[panetrain]

It won't fit in parking garages with the basket.

This is my idea of an SUV.

http://www.expeditionswest.com/vehi...ON30/699445_1262585_4268_2845_08c1392_002.jpg

 

[panetrain]

Corporate jet tax loophole should cover this.

At first I thought he had really hit the big time and was ordering one of these G550's

-pod

 

[MTGas2B]

Think my new rig will qualify?

This one isn't mine, but it looks pretty much just like the one I am negotiating on.

Of course since it has a >6.5 foot bed it doesn't matter... I don't need the loophole.

- pod

That's a monster dude. I guess even if I had corporate income from my yet to be created corporation my Audi Q5 probably wouldn't qualify.

 

[TrustMe]

Periop, you should look into getting one of these.

 

[periopdoc]

Got to have something with which to tow the toy hauler that is in my future.

There is nothing quite like a redneck who runs into a little money.

- pod

 

[joshmir]

I just read up on this....

Im worried that if you just commute form home to work, its not considered "business use" and to do the 100% bonus write-off it must be used 100% for business...

now you may be able to say you have a home office, and then any commuting you do is "business", as some advocate...do you think this holds water?

also, if your place of bsusiness is always "temporary" (ie assignmnet less than a year) and changing you may be able to say its business...

how long does it take to become incorporated? i don't have a corporation now, but i will be doing some locums coming up here...

thanks

 

[FiremedicMike]

Not sure if you guys are interested in trucks also, but ford retooled their v6 and created a 3.5 liter v6 with dual turbos that crushes all other 1500 trucks in terms of torque and horsepower, all while managing to get 25ish mpg on the freeway.

 

[periopdoc]

I looked long and hard at the "ecoboost" 1/2 ton. Impressive as hell all the way around and rides great. Ultimately went bigger because I am looking at towing right at the max of the ecoboost and I prefer to have some margin of safety.

If you decide to deduct mileage in our business, I recommend contacting the IRS and getting preapproval in writing. Our partnership contract is set up in such a way as to allow us to deduct mileage from our home office to our hospital or ASC. We are not allowed to take the home office deduction however.

Time to set up an LLC is variable. In the State of Washington I think it took all of 5-10 minutes online. I went the extra step of obtaining a business license in the State of Washington and City of Seattle. I know some guys who did not do this, but it also only took about 10 minutes online and then about 30 min per year additional tax time. I would also recommend a separate business checking account with your LLC's name on the check. It makes accounting a lot easier and gives you an extra leg to stand on in claiming separation of personal and business expenses should you get audited. Although I claimed all of the income on my taxes, I still would pay myself a salary from the business account to demonstrate a clear line between corporate and personal worlds. Not sure if that would be any additional help, but it created a paper trail that I could use as necessary.


- pod

 

[pgg]

how long does it take to become incorporated? i don't have a corporation now, but i will be doing some locums coming up here.../QUOTE]

I was talking about this with my brother yesterday, who is 100% self-employed but not incorporated or a LLC. He needs a new work truck, and appears to be eligible for the sec 179 deduction.

Correct me if I'm wrong, but I don't think you need to be incorporated. As long as you report business income on a Schedule C, aren't you eligible to take the deduction?