Self-employed? Small business? How 'bout a free SUV
This has to be one of the best kept secrets of the tax reforms passed last year and (again) this year. I suspect that it will not survive into next year, mainly because people keep taking advantage of the "loophole" that has all the Democrats mad as hornets. The two California Senators tried to limit the exemption to "ag" vehicles this year, so –if you're considering a qualifying purchase — move quick.
Basically, it works like this: Congress wanted to boost business investment for small business owners and the self-employed and (at the same time) prod the economy into a period of recovery. So, Congress increased the limit on capital purchases to include vehicles in excess of 6,000 lbs and changed the single year deduction from $25,000 to $75,000. This year, that deduction is even sweeter: $100,000.
So, let me break that down for you: If you're self-employed or a small-business, you could go out and purchase any vehicle over 6,000 lbs and immediately credit $100,000 of the purchase cost against your taxes. So, if you need a delivery truck, heavy farm truck, Hummer H2, Lincoln Navigator, Mercedes M Class, or something like that – it's pretty much free this year. Consult your local car dealer and tax professional, of course.
How great would that client feel when his real estate agent picks him up in a new Cadillac Escalade? Probably not near as great as the agent that bought it for free.
At last count, there are 38 or so SUVs and heavy trucks that qualify. As best I can, here's the list and more links:
6,000lb Cars, Trucks, & SUVs:
BMW X5, Cadillac Escalade, Chevy Astro, Chevy Avalanche, Chevy Express, Chevy Silverado, Chevy Suburban, Chevy Tahoe, Dodge Durango, Dodge Ram Van, Dodge Ram Maxi Van, Dodge Ram Wagon, Dodge Ram 1500, Dodge Ram 2500, Dodge Ram 3500, Ford Excursion, Ford Expedition, Ford E-150, Ford E-250, Ford E-350, Ford F-150, Ford F-250, Ford F-350, GMC Yukon, GMC Safari, GMC Savana, GMC Sierra, GMC Sierra Denali, Land Rover Discovery, Land Rover Range Rover, Lincoln Blackwood, Lincoln Navigator, Mercedes-Benz ML320, Mercedes-Benz ML500, Mercedes-Benz ML55 AMG, Toyota Land Cruiser, Toyota Sequoia, and Toyota Tundra.