title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Friday, March 03, 2006
 
Pushing SUVs

How GM Trains Dealers of Big SUVs To Calm Gas-Price Fears

I was surprised to not see any mention in this article of the lucrative tax breaks, such as Section 179, that are available for purchasing business vehicles weighing more than 6,000 pounds. 

I can still remember receiving a letter from American Motors Corporation in 1984, shortly after our rulers in DC enacted the luxury car rules that drastically limited the depreciation of business vehicles.  The letter was addressed to tax professionals and pointed out the 6,000 pound loophole, which allowed buyers of the Jeep Grand Cherokee (weighing just over 6,000 pounds) to claim much higher depreciation deductions, along with more Investment Tax Credit, than buyers of vehicles weighing less than 6,000 pounds. 

GM should try that approach, especially since there seem to still be lots of tax pros who are unaware of the 6,000 pound loophole that’s only been in the law for 22 years.  

 

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/03/2006 09:10:00 PM Send this post:

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