I know that it’s been a very long time since I was in school; but when did they change the definition of a ton?

Q:

Subject: question about site info

hi there,

i read over the info on your site about section 179, and i didn't find a clear answer about the suv's.

can you tell me if i can take the 179 on the durango i just purchased in august of this year? it is only 4.5 tons i think, but the cost was only $25K. i am incorporated, as a S-corp. the durango is owned by my business 100%, it is not for personal use. i bought it mainly as a way to help with my taxes, and now i am confused as to if i am allowed to use this at all.

please help!

thanks!

A:

You really should be discussing this with your own personal tax advisor.  If you are trying to operate an S corp without a tax advisor, you are asking for big trouble.  Buying a new vehicle just for tax breaks was a mistake.  Don't make matters worse by trying to do this on your own.

I assume that the Durango weighs 4,500 pounds and not 4.5 tons, which is 9,000 pounds.  The maximum Section 179 for a vehicle under 6,000 pounds is much lower than for one over 6,000 pounds.

I have this all explained on my website.

but only a qualified tax pro will be able to give you more specific numbers for your situation.

Good luck.

Kerry Kerstetter

Follow-Up:

i do have a personal tax advisor. she is on vacation until jan. 2nd, and i needed an answer before the 31st. i didn't buy the vehicle solely for a write off, as it is my business vehicle. but it will act as a write off...

same as my computer equipment, software, and other items necessary for my business to operate. therefore my question was legitimate as i needed to know if i could use the section 179 towards the durango. (which would mean i needed to make another large payment by the 31st). i found out that it does weigh 6600 pounds, which makes it qualify. also, i always thought that 1000 pounds was a ton. i will double check on that math, because i could swear that is correct. then again, i am a just graphic designer... not a mathmatician.

 

 

Labels: 179

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 12/30/2005 02:57:00 PM Send this post: