Discussion:Depreciation on a truck
From TaxAlmanac
| Revision as of 18:09, 27 September 2007 Taxref (Talk | contribs) (Before you can c) ← Previous diff |
Current revision Skq9545 (Talk | contribs) (Yes, I did look) |
||
| Line 15: | Line 15: | ||
| Without being familiar with the model, I would hazard that the truck you describe is over 6K GVW and not an SUV. If that is correct, your depreciation would be the full MACRS percentage, reduced for any personal use. The same goes for 179, assuming you have enough business profit.}} | Without being familiar with the model, I would hazard that the truck you describe is over 6K GVW and not an SUV. If that is correct, your depreciation would be the full MACRS percentage, reduced for any personal use. The same goes for 179, assuming you have enough business profit.}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Skq9545|Date=September 27, 2007|Text=Yes, I did look it up and it's weight is approximately 8,800, over the 6,000 limit. I had researched the previous questions, but evidently I did not put in the correct subject to get to the anwser referred to by Taxref. Taxref could be correct in taking a general class, however, some of these classes do not always get into any depth on any particular topic. This is a truck, and not an SUV - I have seen it. The client has plenty of business profit, that is why I need to take the maxiumum depreciation possible to get his tax bill reduced. }} | ||
Current revision
Discussion Forum Index --> Basic Tax Questions --> Depreciation on a truck
Discussion Forum Index --> Tax Questions --> Depreciation on a truck
| 27 September 2007 | |
| I am getting myself confused by reading the Instructions for Form 4562. According to the Chart in the 2006 Instructions, the limit on your depreciation and section 179 expense is $3,260. Is that the total amount that can be taken for a 2005 Dodge 2500 Diesel truck? Then there is a paragraph saying you cannot elect to expense more than $25,000 of the cost of any SUV and certain other vehicles placed in service during the tax year. Evidently this is for vehicles more than 6,000 pounds. How can something that seems so simple get so complicated? When I input the vehicle into my software program, I think it came up with $7,000 depreciation. | |
Death&Taxes (talk|edits) said: | 27 September 2007 |
| This is where the search box comes in handy: try "Heavy SUV" for one and here is one free of charge:
Discussion: Truck Depreciation And Kevin and others, including myself, suggest attending a decent seminar on general tax topics where this type of issue will be discussed. | |
| 27 September 2007 | |
| Before you can compute depreciation on a vehicle, you first have to determine what kind of vehicle it is for tax purposes. There are at least 4 different categories.
The $3,260 limitation is if the vehicle meets the definition of a luxury car (which is not necessarily a luxury car). If the vehicle is over 6K GVW its not a luxury car, so you can take up to the full depreciation and/or 179 allowed. The exception is if its over 6K GVW and an SUV, you are limited to $25K 179. There is also a different exception for trucks and vans under 6k GVW which are built or modified in such a way that they are not suitable for passenger use. Without being familiar with the model, I would hazard that the truck you describe is over 6K GVW and not an SUV. If that is correct, your depreciation would be the full MACRS percentage, reduced for any personal use. The same goes for 179, assuming you have enough business profit. | |
| September 27, 2007 | |
| Yes, I did look it up and it's weight is approximately 8,800, over the 6,000 limit. I had researched the previous questions, but evidently I did not put in the correct subject to get to the anwser referred to by Taxref. Taxref could be correct in taking a general class, however, some of these classes do not always get into any depth on any particular topic. This is a truck, and not an SUV - I have seen it. The client has plenty of business profit, that is why I need to take the maxiumum depreciation possible to get his tax bill reduced. | |
