The Mudcat Café TM
Thread #64272   Message #1050089
Posted By: JohnInKansas
08-Nov-03 - 08:36 AM
Thread Name: BS: SUV Tax Break?
Subject: RE: BS: SUV Tax Break?
The real crime here is that the "buying public" is so ignorant that they will believe the "sales pitch" that says that you can get a tax break for buying from the dealer (and only from that dealer?) who tells you about it.

Provided that you have a legitimate business, and that you use your vehicle in that business, you can take the same kind of tax deduction(s) for any vehicle, regardless of size. Unless you can show that the vehicle is 100 per cent used only for business purposes, you do "need" to keep rather detailed usage logs (needed only if you're audited?) and for "small value" items it's often not worth it.

While there is, perhaps, a "presumptive" interpretation that vehicles over a certain size are not useful for personal purposes; and the IRS might be willing to take your word more readily for a large vehicle than for a small one, with somewhat less detail in your logbooks; you'll still need to show the "business purpose" of the vehicle for your deduction to withstand an audit.

An acquaintance who had five stretch limos for business purposes was taking this deduction 25 years ago. It was, and is, no different than the accelerated depreciation writeoff I take almost every year for small items of office equipment - except that this salesman has found a way to use it (dubiously) in his pitch. He probably believes, rightly(?), that his customer base consists of idiots who will believe he's discovered something for them.

John