Normally, to get this 100% bonus depreciation, you either have to have a net vehicle weight over 6,000 pounds, which means unloaded weight. This is difficult as best. However, meeting the gross vehicle weight test is easier. This means carrying weight,which includes the car weight, passenger weight and cargo towing weight. The Gross Vehicle Weight test is thus much easier to meet.
To use the Gross Vehicle weight test, you have to be a qualified truck or a qualifed SUV. A qualified SUV are those vehicles that carry passengers, have an integrated truck chassis and have a gross vehicle weight of over 6,000 points, as noted on the sticker found in the door jam of the driver’s side of the door.
So who are the clear vehicle winners under the new law. The anwer is:
New qualifying SUVS and new qualifying pickup trucks with gross vehicle weight of over 6,000 pounds and cargo beds of 6 feet or more.These get 100% write-off of business use.
Used qualified trucks, new trucks with less than 6 foot cargo beds, and uses SUVs can still qualify for expense elections of $25,000 plus regular depreciation.
Hybrid cars get some tax credits that aren’t as good as that of NEW qualified SUVs and pickup trucks.
If you want to maximize your deductions for used cars, you should get a pickup truck or vehicle with a truck chassis with a 6 ft cargo bed. If it doesn’t have a six foot cargo bed or bigger, you should limit your purchase to about $35,000,which should allow close to a 100% write off of this amount of business use.
Gas saving cars like Hondas get the least benefits with no bonus depreciation and no expense election. One wonders what Congress was thinking in giving heavy metal, monster gas eaters a 100% write off but giving gas saving cars MUCH less in depreciation. Someone got paid off here
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