Saturday, December 23, 2006


A Sports Utility Vehicle you bought in 2006 rated at 6000 pounds fully loaded could be eligible for a $25,000 Sec 179 write-off.
If you bought it prior to 2006 and began using it for business in 2006 it won’t qualify for the $ 25,000 write-off. All Sec 179 requirements must be met in order to take the #25,000 write-off. Subscribe with Bloglines
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To qualify for a Sec 179 deduction:
The property must be tangible personal property (not real estate), so a SUV qualifies.
If you acquired the SUV thru gift or inheritance it does not qualify
If you traded in an old vehicle, the SUV deduction is allowable only to the extent of the cash you paid in addition to the the trade-in.
And you can’t take a $ 25,000 deduction if your cost was less than $ 25,000.
Here is how I interpreted a confusing definition as to whether loaded or unloaded weight applied;
Definition: Trucks and vans are passenger autos built on a truck chasis, including minivans and sport utility vehicles that are built on a truck chassis.
Next statement: Trucks and vans rated at more than 6000 pounds loaded gross vehicle weight are not subject to Sec 280F depreciation limits. Note: Sec 280F places limits on depreciation and Sec 179 limits on Automobiles and other listed property.
Interpretation: A SUV is a truck or van by definition, so a SUV is eligible for the $25,000 write off based on loaded gross vehicle weight (GVWR).

More information:
You can find a lot of information at
The last page of the carguy web site lists a group of qualifying vehicles and warns that the list is not complete. It states the GVWR (Gross Vehicle Weight Rating) can normally be found on the label attached to the inside edge of the driver’s side door.
The GVWR is the Maximum Allowable weight of the vehicle FULLY LOADED.

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This information is not intended to be advice to the recipient.In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this Blog was not intended or written to be used and cannot be used for the purposes of avoiding penalties.

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