Talked to my accountant last week and he says it's time for a new truck. (for depreciation purposes)
I was thinking an SUV but I don't really like anything that DC sells, and now that GM stands for Govt. Motors I'm not about to buy one of them and Toyotas are too darned expensive.
So I figured I'd get the closest thing to an SUV and go with a Mega cab.
A couple of issues though.
The short bed thing gives some concern if I want to tow a fifth wheel camper but I'll still have the 12V beast in the stable.
I'd prefer to not get the dually but it seems most of the inventory I'm seeing are duallies.
I would also like to go with the 3.42 differential.
Does anyone know the real differences between the 2 yr models?
Pros and cons for each?
What about the whole LP issue that the early 24V engines were having, is that still a problem?
As you can see I really haven't been following anything but the 12V issues.
Any insight from you good folks would be greatly appreciated!!

 

This question begs quite a few more questions in my mind.

First: Why is your accountant telling you it time for a new truck for depreciation purposes? Isn't he aware that your '96 is at nearly the flattest point on the depreciation curve that it can be?

If you buy a new truck - right off the lot, you're going to loose just about 20% right away once it's been titled. 20% of 40k is, well, around $6600 right away. Making the value around 33,000. Let's consider that your '96 is worth 6600, probably not that far off. Take 20% off that - which won't happen in the next year. Now your truck is still worth around $4580 or so.

So - who has the depreciation factor in mind? An accountant makes money when you spend money. He's not going to tell you to keep your old, paid for rig, since that's not going to change your balance sheet. If you borrow to buy the truck, you'll pay a lot more than it's worth in the end.

I'm dealing with this in my mind as I like the new Jetta TDi's, but just really can't justify payments on a deprecaiting asset. I would stop taking your accountant so seriously.

If YOU want a new truck, that's a different story.

 

the above statement would be true if the IRS would think like that too. I am gonna take a shot in the dark here but probably needs the new rig to offset some taxable income over the next 5 years (since you can drag it out for that long)

 

The reason is that I can take up to 25K depreciation which will reduce my taxable income. My 96 is pretty much depreciated away now.
I'm not sure how much I will actually reduce my income and he said outright that unless I have a use for a truck not to bother but he said I could buy a truck on Dec 31st and get to take the total depreciation for the yr.
I'm not sure what kind of accountant you deal with but my gets nothing from what I spend. He essentially charges me a flat fee when he does my taxes each yr and meets with me sometime in between to advise me on way to reduce my tax burden.(At no extra cost) Another thing he advised me on was to open a SEP (like an IRA)account. Generally this is an account that employers have to offer to all employees if they want to take one themselves. Since I'm a member of a partnership and the profits are charged to each respective partner I can take one out against my individual income. 42K in a SEP account will save me close to 15K in taxes!!!!

 

A jetti hardly classifies for the depreciation. The vehicle must be over 6000lbs.
If you can't take your accountant seriously then you need to get another accountant!!

 

Sorry, guess I should have been clearer:

I wasn't aware that you were looking at it for business reasons - that DOES make sense. My father had 2 of his own businesses, and veichels (such as tractors & combines) for the farm he depreciated out of value over time. Looking at it this way, it Does make sense, however the vehicle you purchase for a business is supposed to be just that - a work truck, van, etc. This is exactly why the Dodge Sprinter is offered only in 2500 & 3500 models - they qualify based off weight ratings as work vechiles.

**Side note - there must be a loophole for this somewhere. A company near Chicago, Alarm Detection Systems, has for years used Jetta and Passat TDi sedans & wagons for thier business vechiles, which in my mind is pretty smart. They don't need a heavy work truck, they know the TDi is a durable and highly fuel efficient engine, and they know it's a lower cost & maintaince alternative to a hybrid. So somehow there is a way to do it.**

Yes, the TDi would only be for personal use. So is my truck. And no, since I don't have a business, I also don't work with an accountant, however I have considered it for future financial evaluation.

 

Yes I believe you can take a depreciation for something like a Jetta but the depreciation I'm referring to allows one to take up to 25K for the yr the new vehicle was purchased as long as it weighs over 6000lbs. I tried to find the tax code but can't seem to find the specifics. Anyway some yrs back folks were purchasing Hummers left and right for this same depreciation. Anyway he said that if we were considering anything new to make sure that the weight is over 6K so we can take advantage of this automatic depreciation.
I should have had a 2K in iron welded onto my Challenger last yr........ Could have gotten it last yr as well!!!

 

they are able to get away with deducting mileage rather than depreciation. Once you start using mileage you can't go to depreciation and or vise versa. My truck fits the requirements for depreciation but since I also use it for personal I take a % of the mileage per year for business and the remaining % is personal use.

 

to bad they go by curb weight of the rig. the challenger would be lookin like mad max! LOL

 

OH Yea!!!!! AR AR AR!!