If the soaring price of gasoline has not deterred you from purchasing a SUV, you may be able to take advantage of a perhaps unintentional tax break.
For a limited time only, the 100 percent bonus depreciation rules allow a complete write-off for the cost of a new heavy SUV that is used entirely for business. A heavy SUV is one with a gross vehicle weight rating of more than 6,000 pounds.
The depreciation deductions available for vehicles weighing up to 6,000 pounds are limited by several tax law provisions, generally known as the “luxury car caps.” Because heavy SUVs are exempt from the luxury car caps, the cost may be depreciated under the regular tax depreciation rules.
Under the 2010 Tax Relief Act, the bonus first-year depreciation percentage is 100 percent for qualified property that is acquired and placed in service after Sept. 8, 2010, and before Jan. 1, 2012. So, if you buy and place in service a new heavy SUV before Jan. 1, 2012, and use it 100 percent for business, you may write off its entire cost in the placed-in-service year.
If the soaring price of gasoline has not deterred you from purchasing a SUV, you may be able to take advantage of a perhaps unintentional tax break.
For a limited time only, the 100 percent bonus depreciation rules allow a complete write-off for the cost of a new heavy SUV that is used entirely for business. A heavy SUV is one with a gross vehicle weight rating of more than 6,000 pounds.
The depreciation deductions available for vehicles weighing up to 6,000 pounds are limited by several tax law provisions, generally known as the “luxury car caps.” Because heavy SUVs are exempt from the luxury car caps, the cost may be depreciated under the regular tax depreciation rules.
Under the 2010 Tax Relief Act, the bonus first-year depreciation percentage is 100 percent for qualified property that is acquired and placed in service after Sept. 8, 2010, and before Jan. 1, 2012. So, if you buy and place in service a new heavy SUV before Jan. 1, 2012, and use it 100 percent for business, you may write off its entire cost in the placed-in-service year.
