IRS Tax Deduction

[Holliswebb]

Does anyone know for sure if we can deduct the cost of our 2007 Tundra CrewMax, up to $25,000, as a business expense in 2007. I think it is a Section 179 deduction, but not sure about that. The question relates to whether the truck has a gross vehicle weight of more than 6000 pounds and is used in a trade or business. Any opinions? Hollis Webb

[ChiroHorn]

Yes, the Tundra qualifies for the 6000 curb wt. threshold. $25K is the old limit...it's higher now. Contact your CPA as to whether or not you qualify for the expense. And if so, how much of your purchase price applies.

This tax tip outlines Section 179 expensing that allows a business to fully deduct the cost of property in the year it is purchased rather than depreciating the business assets over years.

[tiger4life]

Thats why I got my new one yesterday, yes you can and it will meet the guidelines. Check with your accountant but mine told me they changed it to where the limit is a whole lot higher like 150,000.00 or so. But the best thing is to ask your accountant. The law is set to where a comapany can grow meaning adding trucks and equipment. There is some restrictions but my accountant handles all that. One thing is i dont believe you can get it replacing a truck that you did the same thing on. it has to be a new addition to your business. But im not sure if there is a time frame where you can do it as a replacement.

Always consult an accountant!

[DougR]

First, I'll preface all of this with the presumption that you are referring to an S-Corporation.

According to my accountant, yes. The rules as I understand it are:

1) The GVWR must be over 6000 pounds

2) If the vehicle is used for personal use as well, the Section 179 is reduced by the percentage of personal use. (I.E.: 75% business use/25% personal use; multiply the vehicle cost by 75%- that's what can be written off in the first year.) If the business use is less than 50%, I think you lose the ability to write it off but I'm not certain.

3) Unless the truck/SUV meets other criteria, $25,000 is the maximum first year write off.

4) The Double Cab meets those extra conditions (bed longer than 6'), the Crew Max doesn't (at aleast until the 6.5' bed version actually appears). Since it meets the conditions, the complete cost can be taken in a single year. (I think the max for a vehicle under Section 179 is $102,000.)

Doug


Of course all of the above comes with the caveat that I'm neither an accountant or a tax attorney!

[NOVA Tundra Owner]

I am a retired CPA. The truck does meet the requirement if it has a GVWR over 6K pounds and has one or more of the following:

1.Designed to seat more than nine passengers behind
the driver’s seat.

2.Equipped with a cargo area (either open or enclosed by a cap) of at least six feet in interior length that is not readily accessible from the passenger compartment, or

3.That has an integral enclosure fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver’s seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.