title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Tuesday, March 21, 2006
 
Sec 179 For Lighter Vehicles

 

Q:

Subject: Section 179 Deduction

"Qualifying Property

 Generally, the types of business equipment that qualify for this expensing election are the same kind that qualified for the now-defunct Investment Tax Credit. Most movable assets qualify.  Permanent structures do not qualify.  Business vehicles with a gross vehicle weight over 6,000 pounds qualify for the full Sec. 179, while lighter vehicles have a much lower dollar limit." 

If a lighter-than-6000 pound vehicle does not qualify for the full Sec. 179, then how much do they qualify for?  Or where can I find that answer?

Thanks!

A:

From the QuickFinder Depreciation handbook:

For 2005, the Sec 179 limit was:
     $2,960 for passenger vehicles under 6,000 pounds
     $3,260 for trucks and vans under 6,000 pounds
     $8,880 for electric vehicles

The 2006 limits haven't been announced yet.  They will most likely be the same as for 2005, or even lower, which happened between 2003 and 2004.

Kerry Kerstetter

Follow-Up:

Kerry, thanks!
 
 

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/21/2006 12:31:00 PM Send this post:

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