Tax Break for Toy Hauler's??

[SchellSchock]

According to a Dec. 18, 2002 Detroit News article:
Karl Wizinsky, a health care consultant in Novi, was able to write off $32,000 of the $47,000 purchase price of a Ford Excursion as a business expense. It's perfectly legal, and accountants and auto dealers are starting to catch on.
Indeed, I've even heard luxury vehicle dealerships advertise on the radio how luxury SUVs avoid the luxury car tax. What this scheme does is combine:
the avoidance of the luxury car tax (by buying a luxury SUV instead)
the claim that the SUV is a "truck" used for business purposes (e.g. hauling?)
expensing most of the purchase under Sec. 179 rather than depreciating it. Sounds like I'm gettin a new hauler this year!!!!
Any comments????

[Mandelon]

I've heard that its a legitmate loophole. But, you're supposed to actually have a business, and keep mileage records of the time it is actually used for business. Any personal (non-business) use is supposedly taxable.
So a company called "ShellShock's Hauling" would be ok, but you'd have to have some proof that you did hauling for others.

[Lightning]

I'm no CPA, however this is the way I understand this tax code.
You need to have a business (Billy Bobs Waterski School)
The vehicle has to be used to see clients out of the office. (Taking your friends to the river for a weekend of choas)
There is also some stipulation about not being able to write off a business that is in the red for more than 3 years.
Many people are under the assumption that if you are self employed and you drive back and forth to the office, you will qualify for the deduction. I have talked to many CPA's and they have said this is not the case. You actually need to have a business that requires you use the vehicle for conducting that business.
Also, if you do write it off, and get audited you may be subject to a penalty for imputed income, which they can go back indefinately as far as the IRS is concerned.
So is it legal? Hell yeah it is, just make sure the business actually requires the use of the vehicle (commuting back and forth to the office does not count).

[spectratoad]

Lightning is correct. I am no accountant but in speaking with my father, who is a very aggressive accountant ie... if it is a gray area, go for it, all the IRS can say is no, he has always said that it is much better if it is business related and you can show some sort of close distinction. The IRS gets enough of our money, the more you can keep without going to jail, HOOAH!! :D