Accountants.....Car dealers......Lease or purchase

[clownpuncher]

I'm getting a new truck, probably today. Does anyone know about the new tax law in effect for vehicles weighing 6000 lbs or more? I would normally lease for 100% write off of the payment, but, I was told about the new law that would allow me to write off a purchase the same, or close to, a lease. Any ideas? Thanks in advance

[Dave C]

own, own, own.............
sorry.... your looking for section 179 deduction. You mean for your business right?
at any rate... own, own, own....
sorry again.

[Tab]

If it is a truck or a van with a gvwr > 6000lbs and it is used in a trade or business(not as an employee of an entity you do not have ownership in), under current federal law you may deduct under code section 179 up to $100k of the cost in the current year. There are limitations. If your business acquires > $400k in f/a's in the c/y the allowable sec 179 exp. gets phased out. Calif c corp's are not allowed sec 179, only $2000 "bonus depreciation". California has not acquiesed to the $100k limit. Still only allows $25k. You may not use sec 179 to increase a c/y loss. Blah, blah, blah.........For all the specifics visit WWW.IRS.GOV...form and publications. Enjoy your new truck. Tab P.S. You must purchase(or acquire under a CAPITAL lease to take advantage of code sec 179). 99.9% of passenger auto and trucks the size were talking about are OPERATING LEASES......NOT CAPITAL LEASES. Operating leases are not eligible for code sec 179 exp.

[clownpuncher]

Wow. Guess it's not a "yes" or "no" question huh? Yes, I'm the business owner and the truck is used 99% business. I'll check the link and call my accountant. Thanks

[Tab]

Excellent idea. Tab

[Ziggy]

I only heard about folks using a tax advantage on that size vehicle on our X5 models but knew nothing of the specifics, and it seemed the major advantage was before year end 03..sounds like your accountant would be your best bet to straighten out the details....not my bag.