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Drive up bigger depreciation deductions for unibody SUVs

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in Small Business Tax,Small Business Tax Deduction Strategies

If you’re buying an SUV for your business this year, you might be able to sidestep a major tax roadblock to bigger depreciation deductions. A new IRS ruling appears to extend a narrow tax law exception to more vehicles. (IRS Revenue Procedure 2008-22)

Strategy: Pay close attention to the vehicle specs. This could be worth literally thousands of dollars on your 2009 tax return. 

The new tax-saving opportunity relates to a subtle change in the language used by the IRS to set the so-called “luxury car” limits.

Here’s the whole story: The annual depreciation amount you may claim for a vehicle used for business driving is limited for luxury cars and other vehicles such as light trucks and vans. Traditionally, the IRS announces the current limits for each year in March.

The limits for 2008 were boosted by the 50% “bonus depreciation” allowance included in last year’s economic stimulus law. Although bonus depreciati...(register to read more)

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{ 1 comment… read it below or add one }

John January 25, 2012 at 1:23 pm

Do you think this could apply to minivans with GVWR over 6000lbs as well? The category is trucks and vans. Minivans are a type of van and they are classified as light trucks by federal mileage standards.0


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