Wow, finally something I can post on! FYI:
First bought my Dodge for this benefit.
Found out later, 6000lbs GVRW, not curb weight so your 1/2 ton gasser friends can qualify. (No one knows according to your business if you are carrying a payload or not)
Business for self, not only farming because it gets registered as a commercial vehicle.
Many a corporate business exec are driving Suburbans etc. for the company to qualify it as a business vehicle.
The truck does not have to be brand new. Only new to you. And you take a portion of the initial investment and broadcast the rest of the writeoff over 5 years.
Caveat: There is a recapture if you sell the vehicle/ based on the resale price.
Ask your CPA, many do not know of this loophole.
The write off can only be taken in the year the vehicle was bought then depreciated for the rest of the 5 year period.

 

As others have said - check with your accountant. You'll really want to figure your taxes out with and without the accelerated depreciation. If you are a partnership, a LLC, or an "S" corporation, where the profits -- and losses - pass directly to your personal taxes, the accelerated depreciation may through you into the AMT (alternative minimum tax), in which case it would be better to use the straight-line depreciation. Just a thought. You know the old saying, "we're from the government and we're here to help you."

 

Does anyone know the Tax cite and form for this deduction. I spent @ 3 hours on the IRS site last nite & never felt I found the correct form or instructions for the claim.

 

The article mentioned it was tax code 179. Found another place you can research tax breaks and such. Found some more info on it and it also gives you the tax form needed. <br><br>http://www.bankrate.com/brm/itax/Edi..._deduction.asp<br><br>

 

just a quick question, where do I get a fed tax ID #?<br>I have a state one, but I guess I need a fed too...

 

Try this URL for for an EIN:<br>http://www.irs.gov/businesses/small/...=98926,00.html

 

I'll give you a quote from the IRS publication 583 regarding depreciation. &quot;You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place it in service for use in your business. This deduction is known as the &quot;section 179 deduction&quot;. You can also take a special depreciation allowance of 30% of the cost of qualified property for the year the property is placed in service. For more information about depreciation, the section 179 deduction, and a definition of qualified property, see Publication 946, How To Depreciate Property.&quot;<br><br>Hope this helps.

 

I'll give you a quote from the IRS publication 583 regarding depreciation. &quot;You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place it in service for use in your business. This deduction is known as the &quot;section 179 deduction&quot;. You can also take a special depreciation allowance of 30% of the cost of qualified property for the year the property is placed in service. For more information about depreciation, the section 179 deduction, and a definition of qualified property, see Publication 946, How To Depreciate Property.&quot;<br><br>Hope this helps.

 

Cool diesel trucks and tax information. What a winning combination. Now all I got to figure out is how to start a business at home with out the homeowners association finding out.