Q. I have a Ford F-150 truck weighing more than 6,000 pounds and use it 100% of the time for business. Was the depreciation tax break for heavy vehicles like mine eliminated for 2012 as part of the fiscal cliff? S.C., via email
A. No. Under a special tax law provision, you can still claim depreciation deductions for a vehicle with gross vehicle weight rate (GVWR) above 6,000 pounds, regardless of the annual “luxury car” limits. The latest rules are covered in Rev. Proc. 2012-23. However, as of this writing, the IRS has not yet released Form 4562, Depreciation and Amortization (Including Information on Listed Property), for 2012 returns. It will be out soon.
Tip: Although this tax break may be eliminated in the future, any change isn’t likely to be retroactive to 2012.