title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Wednesday, December 19, 2007
 
Planning to buy Hummer


Q-1:



Subject: Vehicle Tax Deduction


Mary,

 

Can you tell me what the changes to the deductions for vehicles are after this year?  I am considering buying an 2008 Hummer H2 and am wondering if I will be able to use the accelerated tax deduction for tax year 2008 or if I need to purchase by the end of the year?

 

Thank you,


A-1:



There's nobody named Mary here, so I'll handle this.

There are no big changes in the vehicle deductions scheduled for 2008 other than the inflation adjustment of the overall Section 179 maximum and the possibly new amounts for depreciation deductions on new vehicles of less than 6,000 pounds. 

While unlikely, there is always the possibility that any last minute attempt by our rulers in Congress to patch up the AMT fiasco will include some reductions or eliminations of certain tax breaks, including the $25,000 Section 179 for SUVs, which is a popular target of the environmental wackos.

Your personal professional tax advisor can give you more specific advice based on your actual numbers.

Good luck.

Kerry Kerstetter


 


Q-2:



Kerry,

 

Thank you for your response.  I think you have answered it.  I was being told that after this year a vehicle would have to have a six foot bed and weigh over the 6000 pound threshold to qualify for the accelerated tax deduction.  I am assuming you have not heard the same thing?  This is all based on the changes that came into affect a few years back where business owners could write off a much larger amount in the first year on vehicles in excess of 6000 pounds.

 

I may have myself thoroughly confused here.  Any help is appreciated.

 

Thanks,

 


A-2:



I have addressed this issue in several blog posts, as well as on the Section 179 page on my website.

As always, you should be working closely with your own professional tax advisor who should be current on these areas.  If you are trying to navigate your real estate business without professional tax assistance, you are in dangerous waters and need to find help ASAP.

Good luck.

Kerry



 


 


 

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