Home Page link  

Buying pre-owned SUV (i.e. 6000 + lb) and Section 179 tax code?

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Buying pre-owned SUV (i.e. 6000 + lb) and Section 179 tax code? ccolaso 02-20-2008
Posted by ccolaso on February 20, 2008, 12:00 pm
Please log in for more thread options
 Hello there,

Correct me if I'm wrong, but my understanding about Section 179 tax
code is that we need to buy brand new SUV (6000 plus lb) to qualify
for the $25K dedication plus the 20 % depreciation deductions for the
first year

We are planning on buying pre-owned SUV (6000 plus lb) i.e. between
2005 - 2007 year model and will be using primarily for business
purpose. Will we be able to depreciate 100% of the value of the pre-
owned SUV i.e. in 3 to 5 yrs? Ad whether it will also qualify for the
$25K dedication

Thanks
-Charles

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Mike20878 on February 20, 2008, 5:47 pm
Please log in for more thread options
 On Feb 20, 12:00 pm, ccol...@gmail.com wrote:
> Hello there,
>
> Correct me if I'm wrong, but my understanding about Section 179 tax
> code is that we need to buy brand new SUV (6000 plus lb) to qualify
> for the $25K dedication plus the 20 % depreciation deductions for the
> first year
>
> We are planning on buying pre-owned SUV (6000 plus lb) i.e. between
> 2005 - 2007 year model and will be using primarily for business
> purpose. Will we be able to depreciate 100% of the value of the pre-
> owned SUV i.e. in 3 to 5 yrs? Ad whether it will also qualify for the
> $25K dedication
>
> Thanks
> -Charles
>

You are confusing Section 179 with bonus depreciation. Bonus
depreciation is only applicable for new assets. I haven't read the
new stimulus package in detail so I don't know if the same
restrictions apply for the new bonus depreciation but I imagine it
will.

Assuming used assets will not qualify for the bonus deduction, you
will be able to write off up to $25K.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Charlie on February 21, 2008, 1:49 pm
Please log in for more thread options
> On Feb 20, 12:00 pm, ccol...@gmail.com wrote:
>
>
>
> > Hello there,
>
> > Correct me if I'm wrong, but my understanding about Section 179 tax
> > code is that we need to buy brand new SUV (6000 plus lb) to qualify
> > for the $25K dedication plus the 20 % depreciation deductions for the
> > first year
>
> > We are planning on buying pre-owned SUV (6000 plus lb) i.e. between
> > 2005 - 2007 year model and will be using primarily for business
> > purpose. Will we be able to depreciate 100% of the value of the pre-
> > owned SUV i.e. in 3 to 5 yrs? Ad whether it will also qualify for the
> > $25K dedication
>
> > Thanks
> > -Charles
>
> You are confusing Section 179 with bonus depreciation. Bonus
> depreciation is only applicable for new assets. I haven't read the
> new stimulus package in detail so I don't know if the same
> restrictions apply for the new bonus depreciation but I imagine it
> will.
>
> Assuming used assets will not qualify for the bonus deduction, you
> will be able to write off up to $25K.
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are atwww.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>

thanks Mike for the details

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Similar ThreadsPosted
Buying pre-owned SUV (i.e. 6000 + lb) and Section 179 tax code? February 26, 2008, 11:04 am
quick help please! What business code to use for sched c April 15, 2007, 1:23 pm
business code for estate dispersal January 18, 2008, 8:41 pm
Help with 1099R for 2007 with Distribution code P April 15, 2008, 8:12 pm
Box 14 Code Mass W2 - PreTax Retirement = Social Security March 25, 2007, 11:47 am
How to handle 1099-R with distribution code P (taxes paid on 2006 return) April 5, 2008, 2:44 pm
How to handle 1099-R with distribution code P (taxes paid on 2006 return) April 5, 2008, 2:44 pm
Buying a home and having a roommate June 18, 2007, 9:27 am
Buying a home and having a roommate June 19, 2007, 9:29 pm
Buying a relative's house December 19, 2007, 12:58 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap