Just to keep you guys posted, The $100,000 first year depreciation deduction for SUVs has been slashed to $25,000 by the Senate finance committee. This has yet to be addressed by the House but I wouldn’t be suprised if it became law.
You get out of life what you put into it……minus taxes.
Marv
This compact detatched accessory dwelling has an efficient layout with a vaulted ceiling that enhances the sense of space.
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Replies
How could it be possible to depreciate a $40,000 machine $100,000 in a year. You couldn't depreciate it 100,000 in a trillion years.
$25,000 depreciation sounds good to me. Now, if you could 100% expense it in a year that would be even better.
Stef
Stef,
That's the deal. It's called sec 179 deduction. You can expense up to 25k (used to be 100k and 25k) in one shot. Any remaing balance is depreciated out over useful life. For instance, buy a truck for 250k. I was just looking at that gravel placement truck in another thread. 1st year sec 179 25k. Remaing 225k is depreciated over probably 5 years.
I was wondering why I was seeing subs and contractors on jobs with new Hummers. Probably have seen 4 recently. The 100k deduction probably was the culprit. Contractors see that they can get it "free" and sign up. IMO good move to bring it back down to 25k. If it is legit deduction then depreciate it over 5 years. Why subsidize the Hummer dealers?
Large trucks will remain at $100k. Only SUVs are reduced to $25k.
So is a Hummer a truck or a SUV?
Neither. Its an embarrassment to the driver unless you live in some really tough terrian.
I live in a college town with a really strong law school, hence we have lots of lawyers. In the past year these Hummers started popping up everywhere thanks to this farsicle tax bill.
"Neither. Its an embarrassment to the driver unless you live in some really tough terrian. "
Hey .. thanks for letting me know what's OK to buy.
I'm planning on calling Tool Crib for a big order ... should I run that past ya first ...
or do U only do major vehical purchases?
Might need you to stand next to me at an upcomming auction too ... might get pretty spend there ... I'd like to know what not to buy so I don't offend anyone....
on a more personal note ... I take it you are declining my offer?
Jeff
Buck Construction Pittsburgh,PA
Fine Carpentery.....While U Waite
Anytime Jeff.
I will gladly help you choose a president in the next election as well. Seeing as you clearly can't see straight to make an informed decision.
Good man, pino!
It's time the people in the trades stopped living in a vacuum, that little world of their own where they are the only occupants.
If it were up to me (which is probably not a good idea) I'd gradually eliminate all writeoffs for all business vehicles until the US adopts an aggressive energy conservation stance so we can free our foreign policy from the mideast and no longer have to pay $350 billion and year for a Defense Dept that defends us against what commensurate threat or is it just to defend predatory multinationals?
The incentives for business that are embedded in the tax laws ensure survival of outfits, mine included, that probably shouldn't. They distort the marketplace and I for one advocate the gradual elimination of all of them.
And stop giving corporations the same rights as individuals - they're not. They are a legal structure intended to avoid taxes and liability for their actions, so why should they enjoy the same rights as individuals.
Have a nice day......
You miss the basis of the tax policy. Tax policy is based on NET income. Business deductions are allowed for the costs of doing business. For the most part transporation is a valid cost of duing business.
It is very hard to make a usable tax policy based on gross income.
The problem is that some people cheat on their taxes. This will always be a problem.
now don't go throwing facts and logic into the discussion!
That'll confuse everyone else.
JeffBuck Construction Pittsburgh,PA
Fine Carpentery.....While U Waite
LOL to that.
The point is that you can't write off your $60,000 BMW if you want to take it to work, only part of it; you can write off your humvee. The original law was made so that if you needed a big truck to do your work, you could pay for it and have it written off as a legitimate business expense, which it would be. They picked the 6,000 Lb limit because nobody at that time thought that they'd make a personal-use vehicle that heavy to get to and from work. Encouraging people to buy Hummers is an unintended consequence.
I'm glad that they're closing the loophole.
that may have been the point of the thread ...
but it wasn't the point of the idiot I replied to.
MY point is leave the political BS in the tavern.
JeffBuck Construction Pittsburgh,PA
Fine Carpentery.....While U Waite
Fair enough.
i think a hummer is a waste of effort!!!
aleks