2012
is a great year to buy a heavy SUV! You
can deduct much of the cost this year.
Let's assume that your business purchased and started using a new heavy
SUV costing $60,000 before December 31 of this year. The business could take a total first-year
write-off of $46,000!
First,
the firm can expense $25,000. Then it
can deduct half of the remaining $35,000 cost, $17,500, as 50 percent bonus
depreciation. Finally, the business can
take 20 percent of the $17,500 balance ($3,500) as normal depreciation. Please note that used SUVs don't get the
bonus depreciation of $17,500.
You
can fully write off pick-ups with a loaded weight of over 6,000 pounds in
2012. It’s the same for used heavy
pickup trucks if the cargo bed is at least six feet in length.
Lighter
vehicles can only deduct $11,060 in 2012.
Like any good CPA, I need to add a
disclaimer: Unfortunately, it is
impossible to offer comprehensive tax info over the Internet, no matter how
well-researched or written. And
remember, I love my readers, but having me bookmarked on your computer doesn’t
make you a client: Before relying on any
information given on this site, contact a tax professional to discuss your particular
situation.