6000 lb GVWR tax deduction
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Cadillac Escalade and ESV Forum - 2015+ Discussion, 6000 lb GVWR tax deduction in Cadillac Escalade Forums; Does anyone know if the 6000 lb vehicle tax deduction still applies for 2014?...
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    the blur's Avatar
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    6000 lb GVWR tax deduction

    Does anyone know if the 6000 lb vehicle tax deduction still applies for 2014?

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    OneStepAhead is offline Cadillac Owners Enthusiast
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    Re: 6000 lb GVWR tax deduction

    I believe it does, I'm counting on it myself. I haven't read about any changes to the tax code in that regard.

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    rjhoskins is offline Cadillac Owners Member
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    Re: 6000 lb GVWR tax deduction

    My understanding is yes, section 179 applies every tax year. The main difference between tax years is the deduction limit.....and for 2014 I believe it has gone back to its original limit of only $25,000.
    I'm sure others with more knowledge will chime in.

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    OneStepAhead is offline Cadillac Owners Enthusiast
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    Re: 6000 lb GVWR tax deduction

    Quote Originally Posted by rjhoskins View Post
    My understanding is yes, section 179 applies every tax year. The main difference between tax years is the deduction limit.....and for 2014 I believe it has gone back to its original limit of only $25,000.
    I'm sure others with more knowledge will chime in.
    So you can deduct a max of 25k worth of depreciation a year on a 6000+ vehicle now?

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    rjhoskins is offline Cadillac Owners Member
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    Re: 6000 lb GVWR tax deduction

    Quote Originally Posted by OneStepAhead View Post
    So you can deduct a max of 25k worth of depreciation a year on a 6000+ vehicle now?
    My understanding is yes that is correct (max of 25k deduction for '14)......unless the government decides to change it for 2014 which they have not done as of yet.
    http://section179.org

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    Re: 6000 lb GVWR tax deduction

    Can someone explain the rules in English. Please.... I can't read through the tax law language. Is this a tax credit, or tax deduction ? What kind of documentation do I need to maintain ? Is this only for new or also used ?

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    rjhoskins is offline Cadillac Owners Member
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    Re: 6000 lb GVWR tax deduction

    Quote Originally Posted by the blur View Post
    Can someone explain the rules in English. Please.... I can't read through the tax law language. Is this a tax credit, or tax deduction ? What kind of documentation do I need to maintain ? Is this only for new or also used ?
    Disclaimer: I am NOT a CPA so this is just my personal experience with Section 179 in my business.

    This is a tax deduction for businesses that are purchasing used or new vehicles (SUV or CUV) that have GVWR of 6000lb or greater. Your documentation is your receipt showing the year and model vehicle you purchased as well as something showing the vehicle meets the GVWR.

    A tax credit vehicle would be purchasing a Prius or similar, but that ended in 2010 I believe.

    Hope this helps.

    Ryan

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    Re: 6000 lb GVWR tax deduction

    Quote Originally Posted by rjhoskins View Post
    Disclaimer: I am NOT a CPA so this is just my personal experience with Section 179 in my business. This is a tax deduction for businesses that are purchasing used or new vehicles (SUV or CUV) that have GVWR of 6000lb or greater. Your documentation is your receipt showing the year and model vehicle you purchased as well as something showing the vehicle meets the GVWR. A tax credit vehicle would be purchasing a Prius or similar, but that ended in 2010 I believe.Ryan
    The last time I checked into this, my CPA said NEW vehicles only. But this was a few years ago. I know a lot of things changed at the end of 2013.

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    rjhoskins is offline Cadillac Owners Member
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    Re: 6000 lb GVWR tax deduction

    http://section179.org/section_179_ve...eductions.html

    Read the bottom of the page under "Other Considerations":
    "Vehicles can be new or used (“new to you” is the key)."

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    OneStepAhead is offline Cadillac Owners Enthusiast
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    Re: 6000 lb GVWR tax deduction

    Makes no difference if it's used or new, as long as it depreciates

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    Re: 6000 lb GVWR tax deduction

    I have a few more questions, I hope you gentlemen can answer. I would purchase the truck in my personal name, and insure it in my personal name. Because it's cheaper to insure, and easier to buy. Does this matter as far as taking the deduction ? I realize, it's only a tax form that is being filled out.

    Then I would use the truck for 90% business, and 10% personal. Thank you for your information.

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    rjhoskins is offline Cadillac Owners Member
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    Re: 6000 lb GVWR tax deduction

    Blur--
    From my understanding of the law, it ONLY applies to business purchases. Now, if you are self employed that may make a difference, I'm not sure. You will need to ask a qualified accountant these kinds of questions. In my business, I am in the 'foreground' running the business, interacting with customers and all of my employees--my wife is in the 'background' and actually runs the financials of our business along with our CPA. I asked my wife your question and she agreed with me....business purchases only can benefit from Section 179.

    ----------

    Here are some quotes from Section179.org:

    "Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Several years ago, Section 179 was often referred to as the "SUV Tax Loophole" or the "Hummer Deduction" because many businesses have used this tax code to write-off the purchase of qualifying vehicles at the time (like SUV's and Hummers). Today, Section 179 is one of the few incentives included in any of the recent Stimulus Bills that actually helps small businesses. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses - and millions of small businesses are actually taking action and getting real benefits."

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    hcvone is offline Cadillac Owners 10000+ Posts
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    Re: 6000 lb GVWR tax deduction

    Quote Originally Posted by the blur View Post
    I have a few more questions, I hope you gentlemen can answer. I would purchase the truck in my personal name, and insure it in my personal name. Because it's cheaper to insure, and easier to buy. Does this matter as far as taking the deduction ? I realize, it's only a tax form that is being filled out.

    Then I would use the truck for 90% business, and 10% personal. Thank you for your information.
    Some of my trucks are purchased in my name, and some are in my companies names, don't know why you would have to talk to my accountant, and I would suggest talking to your accountant, but you can purchase it in your name and deduct it from your business if you are the owner. I have been doing this since the early 2000's when you could take advantage of this farm bill law, it has been great thru the years.

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    OneStepAhead is offline Cadillac Owners Enthusiast
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    Re: 6000 lb GVWR tax deduction

    I can confirm that the vehicle can be in your personal name if you're the business owner

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