What are the new depreciation rules on business trucks, SUV’s or vans more than 6,000 pounds gross loaded vehicle weight?
Heavy trucks, SUVs or vans bought this year. Heavy trucks, SUV’s or vans are exempt from the above luxury-auto rules if they are rated at more than 6,000 pounds gross (loaded) vehicle weight. Many luxury and near-luxury-class SUVs fall in this category (your auto dealer can tell you the vehicle’s weight classification). As a result, if you have already bought or will buy a heavy truck, SUV or van this year for use in your business, you may choose to expense, that is, currently deduct for 2003, the entire cost of the vehicle if it costs $100,000 or less (if you otherwise qualify under the “Sec. 179” expensing rules). If you bought the heavy SUV last year, your expensing deduction for it would have been limited to $24,000. If you don’t expense the SUV, you can still claim a very large amount of depreciation. For example, you can claim, on new SUVs purchased after May 5, 2003, a 2003 depreciation deduction of 60% of the cost of the vehicle (50% bonus depreciation plus 10% MACRS depreciati
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- What are the new depreciation rules on business trucks, SUV’s or vans more than 6,000 pounds gross loaded vehicle weight?
- What are the new depreciation rules on business trucks or vans less than 6,000 pounds gross loaded vehicle weight?
