SUV $25,000 deduction Update$$$
**SUV $25,000 DEDUCTION UPDATE**
On Dec23, I wrote about a $25,000 deduction you might be able to take if you buy a new SUV. But, be sure to Look before you leap. There are a few things that may disqualify you.
Link to TAX MAN: http://wwwtaxman.blogspot.com/
Link to other personal finance information
personal finance
YOU CAN ONLY TAKE THE $25,000 AGAINST EARNED INCOME:
If your business or farm had a loss you can’t take the $25,000 against passive income or capital gains, etc. It can only be taken to the extent of your EARNED INCOME, income subject to social security and medicare.
YOU CANNOT TAKE A $100,000 DEDUCTION ANY MORE:
In my previous blog I mentioned the following web site:
http://www.carguyshow.com/taxcodefinal.htm
This web site has a lot of very good information, but it was written before the $100,000 wrute-off expired. Now it is only $ 25,000.
THERE ARE OTHER REQUIREMENTS THAT MUST BE MET
You must meet all of the rules related to Sec 179 before you take a large write-off on a SUV or any other business property. There are much larger write-offs for most equipment you buy for your business, but there are various things that can reduce or eliminate the decuction, so look at it from all angles before you decide. Your earned income, the percent you use it for business and other considerations applicable to Sec 179 deductions all apply to the SUV deduction.
Link to IRS forms and publications:
http://www.irs.gov/formspubs/index.html
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.
On Dec23, I wrote about a $25,000 deduction you might be able to take if you buy a new SUV. But, be sure to Look before you leap. There are a few things that may disqualify you.
Link to TAX MAN: http://wwwtaxman.blogspot.com/
Link to other personal finance information
personal finance
YOU CAN ONLY TAKE THE $25,000 AGAINST EARNED INCOME:
If your business or farm had a loss you can’t take the $25,000 against passive income or capital gains, etc. It can only be taken to the extent of your EARNED INCOME, income subject to social security and medicare.
YOU CANNOT TAKE A $100,000 DEDUCTION ANY MORE:
In my previous blog I mentioned the following web site:
http://www.carguyshow.com/taxcodefinal.htm
This web site has a lot of very good information, but it was written before the $100,000 wrute-off expired. Now it is only $ 25,000.
THERE ARE OTHER REQUIREMENTS THAT MUST BE MET
You must meet all of the rules related to Sec 179 before you take a large write-off on a SUV or any other business property. There are much larger write-offs for most equipment you buy for your business, but there are various things that can reduce or eliminate the decuction, so look at it from all angles before you decide. Your earned income, the percent you use it for business and other considerations applicable to Sec 179 deductions all apply to the SUV deduction.
Link to IRS forms and publications:
http://www.irs.gov/formspubs/index.html
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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