The new Economic Stimulus Act gives a big tax break to “heavy” vehicles. A heavy vehicle is defined as having a GVWR of 6,000 lbs or greater. Typically, this includes luxury SUVs and big 4×4 trucks.
Here’s how you could get a big deduction. Let’s say your business buy a new $65,000 SUV for business purposes. You know that 100% deducted cars are subject to more IRS scrutiny, so instead keep good records to prove that you have 80% business use.
- You get a $25,000 Section 179 deduction, right off the top.
- Because the car is new, you get to take advantage of the new 50% bonus depreciation. That’s $13,500.
- You get the normal depreciation amount of $2,700.
All told, you just got a deduction for $41,200! Make sure you check out the upcoming new TaxLoopholes’s Special Report, “ Nine Hot New Tax Loopholes Strategies from the Economic Stimulus Act of 2008,” available exclusively as part of your membership in the First Class Lounge.
