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Forum: Automobile Expenses
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Re: Vehicle purchase and deduction

Generally, the amount you can claim as first year depreciation expense for a vehicle you purchase is limited to $3,000 or so. There is an exception for vehicles with a Gross Loaded Weight in excess of 6000 pounds, however. When you purchase one of these large SUVs you can claim a first year deduction of up to $25k.

There is one catch. If you get rid of the SUV, or stop using it for business purposes, before 5 years have elapsed, you'll need to "recapture" some of the depreciation you claimed, and pay back some of the taxes you saved on the $25k deduction you took this year.

So while this is a great tax break, you need to ask yourself if you really want to drive around in one of these huge vehicles for the next five years.

I would also keep an eye on whether Congress gets rid of this tax break. They just instituted the $4500 clunker rule, where they are giving people money through November 1st for trading in their low gas mileage vehicles.

Zip Code: 01801

Re: Vehicle purchase and deduction - by Gary Davis - Jul 14, 2009 1:08pm
Re: Vehicle purchase and deduction - by Paul - Feb 1, 2010 6:42pm