dgt1031

I wrote my hummer off for business with the 179 deduction, but it appears large sedans will also work. I was told since the bentley GTC max vehicle weight is over 6,000lbs it would also qualify.

I assume the S class would also be in this catgegory.......Anyone know about this?


Thanks!

DRTYLNDY

I had one of my laundromats buy and own my S500 and wrote the whole car off on the taxes. I was even audited and the tax man was cool with it because I used it for business purposes and I owned another car on a personal level.

Blk04cobra1

I was not aware that the S550 would classify at that level, but you could be right...If im not mistaken, the S550 comes in somewhere around 5600lbs curb weight.

dgt1031

Laundryman: did you write the whole car off the 1st year? If so, how did you do it? Secion 179 limits the deduction now to 25,000.

Also, the rule is max gross vehicle weight and not curb weight.

sbbenz

I would have to look at the wording of the law again, but I believe that the vehicle has to have a truck chassis. Therefore the S class wouldn't apply. A GL or G class would apply to this law.

sbbenz

This is an update to my prior post on this thread. The bonus SUV Depreciation applies for this year only. If you buy a qualified SUV-new or used-you can elect to write off up to $25,000 of the business use of that vehicle. A qualified SUV is one that has a truck chassis, carries passengers and has a gross vehicle loaded weight of over 6,000 lbs. Starting in 2008, if you buy a new qualified SUV, you not only get the above noted standard depreciation. You can also claim 50% bonus depreciation. What this means to you is that if you by a qualified SUV, you can write off as much as 80% ofthe business use of that vehicle in the first year! Note that this bonus depreciation ONLY applies to qualified SUV's placed into service this year!! In addition, it doesn't matter when you buy the car. The depreciation and $25,000 election applies to the business use of the vehicle.

Just to run some numbers. Let's say you buy a new GL this year for $60,000, using it 90% for business. Thus, the business use of this SUV would be 90% of $60,000 = $54,000. This year, you can deduct approx. $43,200 of the cost of the vehicle. If you want to take a sizable bite out of your taxes, this will do it. Hope this helps.

JR.

sbbenz,

our accountant said the same thing. trading in a GL450 on a GL550.

the tax savings help offset the substantial depreciation.

just another loophole to take advantage of.

bzliteyear

does R-class count as truck-chassis? same platform as GL, right?
Patrick

4matic

mmm very interesting write up sbbenz. well written

Yacht Master

FWIW, the ML qualifies for tax benefit.

sbbenz

The curb weight of the R is around 5,000 and the ML is approx. 4700 lbs. The R is on the same platform as the GL but is a lighter vehicle. Also, the R might be classified as a "crossover" and not as a "SUV". I mean, you could try to make your argument that the R would apply, but it might be a push especially if you have to explain yourself in an audit. The ML is more of a SUV, but isn't close enough to the IRS's weight definition for an SUV (6000).

I am sure the politicians in DC had Suburbans, Escalades, and Hummers in mind when they created this rule. Although, there is nothing stated about where the country of origin need be. Still, the GL, ML, and R is made in the USA.