Tax Credit For Excursion

[Boston]

Does anyone have any information regarding the big tax writeoff/tax credit for buying an SUV for business over 6,000lbs? I have heard there were big incentives for buying a big vehicle, but I cannot find any relevant information. Any help would be much appreciated.

[Conga10]

Try here:
http://forums.thedieselstop.com/ubbt...31&fpart=1

[Boston]

Thanks for the information. I am not finding exactly what I need. I have tried the IRS site, but after printing 50 pages, it may as well been in Chinese. Are there any other places where I could look? Someone must know something regarding this great news. Thanks in advance of your help.

[jdadamsjr]

It's actually old news... has been around for years, but just last year they accelerated the depreciation deduction into a first year incentive to help businesses buy their vehicle assets...

Most CPA's SHOULD know about it...
if not, might be time to get a new CPA,
because he's not helping you like he should !

And the link above had another link with LOT'S of info in it... it's not the tax code, but it gives you the gist of it...

[Bubba D]

Here are a few tid bits you might be interested in concerning the 2003 Tax Act. It is more than what you asked for, but others might be interested.

2003 Tax Act

With the passage of the 2003 Tax Act, we can all be assured the IRS is going farther from “Tax Simplification”. Below is the summary of these changes:


1.) Increase in the Child Credit – the child credit is increased from $600 to $1,000 for 2003 and 2004. For 2003, the increased amount of the child credit (up to $400) will be paid in advance, beginning in July 2003, based on the information contained in the taxpayers return for 2002.

2.) Standard Deduction Marriage Penalty Relief – the standard deduction for married taxpayers is now twice the standard deduction of single individuals for 2003 and 2004.

3.) Expansion of the 15-Percent Rate Bracket for Married Couples Filing Joint Returns – the 15-percent regular income tax rate bracket for married taxpayers filing joint returns has been increased to twice the amount of the 15-percent regular income for single returns for taxable years beginning in 2003 and 2004.

4.) Ten-Percent Regular Income Tax Rate – the act accelerates the increase in the taxable income levels of the 10-percent rate bracket so that the income levels currently scheduled for 2008 become effective in 2003 and 2004.

5.) Reduction of Other Regular Income Tax Rates – the act accelerates the reduction in the regular income tax rates that are scheduled for 2004 and 2005. Thus, for 2003 and thereafter, the regular income tax rates in excess of 15 percent are 25 percent, 28 percent, 33 percent, and 35 percent

6.) Special Depreciation Allowance for Certain Property – additional first-year deprecation deduction equal to 50 percent of the adjusted basis of qualified property. In order to qualify, the property must be acquired after May 5, 2003, and before January 1, 2005.

7.) Increased Section 179 Expensing – the maximum dollar amount that may be deducted under Section 179 is increased to $100,000 for property placed in service in taxable years beginning in 2003, 2004 and 2005. There is a phase-out of the deductible amount if you place in service more than $400,000 of property per year

8.) Reductions in Taxes on Capital Gains and Dividends – the act reduces the 10 and 20-percent rates on capital gains to five (zero in 2008) and 15 percent, respectively. The lower rates apply to assets held more than one year and to sales and exchanges on or after May 6, 2003, and before January 1, 2009.

9.) Dividend Tax Relief for Individuals – Dividends received by an individual shareholder from domestic and qualified foreign corporations are generally taxed at the same rates that apply to capital gains. Under the act, dividends are taxed at rates of five (zero in 2008) and 15 percent for dividends received in taxable years beginning after 2002 and before 2009.

ALL THESE NEW PROVISIONS MEAN SOME TAX PLANNING NEEDS TO BE CONSIDERED.

Short-term investments will not only qualify for the new lower capital gain rates and the dividends will not qualify for the new lower dividend rate.

Generally, mutual fund dividends will be taxed at the lower rate. However, not all dividends may qualify. Dividends from stocks not held long enough might not qualify. There is not clear guidance out yet in this area.

Bonds and CD’s do not qualify for the lower rate. You might want to review your bond portfolios.

You should carefully review the prospectus of a mutual fund. Some managers like to trade frequently. Alternatively, this type of fund should be bought in a tax-deferred account.

Hope this helps. [img]/ubbthreads/images/graemlins/cool.gif[/img]

[FamilyRide]

[ QUOTE ]
Does anyone have any information regarding the big tax writeoff/tax credit for buying an SUV for business over 6,000lbs? I have heard there were big incentives for buying a big vehicle, but I cannot find any relevant information. Any help would be much appreciated.

[/ QUOTE ]

I posted info in the link above but not until yesterday.

It's called the Job and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). President Bush signed it into law May 28, 2003. "JGTRRA provides approximately $350 billion in tax relief making it the third largest tax cut in U.S. history. JGTRRA provides significant tax incentives for the business use of trucks with a GVWR greater than 6000 pounds."

Hopr that helps. [img]/ubbthreads/images/graemlins/wink.gif[/img]

[Boston]

"I posted info in the link above but not until yesterday".
Familyride2, I am not sure of what you meant by this. I did not find any link above. Thanks in advance for your help. I am sure someone on this site has taked advantage of this part of the tax code.

[roofeditor]

I took a $27,000 write off the first year. Check with an accountant so you don't screw it up.

[FamilyRide]

Boston,

Conga10 posted a link above to a post in the "Ordering" forum in regards to this. I just posted this information in that post and figured anyone that had lookoed then, wouldn't see the new information. [img]/ubbthreads/images/graemlins/wink.gif[/img]