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Congress to Curb SUV Tax Write-off (NOOOOOOOO!!!)
CNN Business ^ | Oct 7, 2004 | CNN

Posted on 10/07/2004 2:24:19 PM PDT by ChuckShick

Lawmakers are looking to trim tax break for small business owners to $25,000 from $100,000.

October 7, 2004: 1:14 PM EDT WASHINGTON (Reuters) -

Congressional negotiators closed a controversial tax loophole on Wednesday that allowed small business owners to write-off the full cost of the biggest and most expensive sport utility vehicles. The auto deduction is part of a long-standing tax provision covering depreciation of business expenses.

It was originally intended for farmers and construction workers who need heavy duty vehicles to haul goods and materials. Lawmakers expanded the popular write-off from $25,000 to $100,000 last year and lifted depreciation schedules to enable taxpayers to take the deduction all at once.

This created a huge incentive for anyone running their own business to buy big SUVs, which have skyrocketed in popularity.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Front Page News; Government; Politics/Elections
KEYWORDS: suv; taxation; taxes; taxreform; writeoff
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Geeeez.
1 posted on 10/07/2004 2:24:20 PM PDT by ChuckShick
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To: ChuckShick

IIRC, you could only accelerate the write off, not write off more. Business deduction is still there.


2 posted on 10/07/2004 2:26:11 PM PDT by Blueflag (Res ipsa loquitor)
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To: ChuckShick

I need to buy a farm pick up truck. Wonder if this will apply to THAT too.


3 posted on 10/07/2004 2:26:24 PM PDT by EggsAckley (..........So many vanities.................so little bandwidth............)
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To: ChuckShick

Doesn't F'n have an SUV. Oh, that's right, it belongs to his family.


4 posted on 10/07/2004 2:27:31 PM PDT by showme_the_Glory (No more rhyming, and I mean it! ..Anybody got a peanut.....)
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To: ChuckShick

Forcing small businesses to haul stuff around in Geo Metros, driving up costs and delays.


5 posted on 10/07/2004 2:27:50 PM PDT by Extremely Extreme Extremist (EEE)
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To: Blueflag

Isn't the depreciation schedule being reinstated so it can't be taken all at once? Also the deduction is being reduced by 75%.


6 posted on 10/07/2004 2:29:52 PM PDT by ChuckShick (He's clerking for me...)
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To: ChuckShick
I don't know how they will structure this - if it will just apply to vehicles, but currently Section 179 depreciation applies to all equipment used in businesses. I had many clients who went out & purchased not only vehicles, but other equipment right before the year-end to get the break. This deduction stimulated growth in the economy by stimulating business equipment purchases.
7 posted on 10/07/2004 2:30:28 PM PDT by gubamyster
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To: ChuckShick

8 posted on 10/07/2004 2:31:02 PM PDT by TBarnett34 (I am become death, the destroyer of vanity posts.)
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To: EggsAckley

I beleive there is a weight minimum which limits it to Hummers, Ford Excursions etc.. The really loades SUVs. But I'm sure a nice dual axle would weigh enough.


9 posted on 10/07/2004 2:32:12 PM PDT by evolved_rage (If it's not Scottish...It's crap!!)
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To: ChuckShick

This is what happens when you have a convoluted income tax system. Politicians cave in to pressure from liberal special-interest groups, and rewrite legislation that affects other groups. If they're going to kill this loophole then they might as well kill all tax loopholes and deductions and just implement a damn flat tax. This will definetly hurt seasonal and self-employed people. Seriously, it's time the people rise up and demand a simple tax code without all the B.S.


10 posted on 10/07/2004 2:35:58 PM PDT by 12 Gauge Mossberg (I Approved This Posting - Paid For By Mossberg, Inc.)
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To: evolved_rage

Thanks. I'm sure I'll be buying a smaller truck. Don't need a huge one.


11 posted on 10/07/2004 2:36:05 PM PDT by EggsAckley (..........So many vanities.................so little bandwidth............)
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To: evolved_rage

The weight minimum was fudged quite a bit. You could even use the deduction on a BMW X-5, which doesn't have much of a GVW compared to an Excursion or Hummer.


12 posted on 10/07/2004 2:36:42 PM PDT by ChuckShick (He's clerking for me...)
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To: ChuckShick

dont know about the new legislation, but the old law just accelerated depr., not upped it.


13 posted on 10/07/2004 2:54:26 PM PDT by Blueflag (Res ipsa loquitor)
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To: ChuckShick

THANK GOD THE GOVT HAS FOUND ANOTHER WAY TO GET MORE TAXES!

/sarcasm


14 posted on 10/07/2004 3:04:09 PM PDT by Mr. K
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To: Extremely Extreme Extremist

They should have extended the tax write-off to ALL vehicles.


15 posted on 10/07/2004 3:04:34 PM PDT by brianl703 (Border crossing is a misdemeanor. So is drunk driving. Which do we have more checkpoints for?)
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To: EggsAckley

"I need to buy a farm pick up truck"

You cannot take the Section 179 deduction if that business did not make a profit.

We have tree farms, but of course, they do not make a profit yet. Bought a tractor this year, have to depreciate it. It would be eligible for 179, if we had the profit to cover the deduction! LOL!


16 posted on 10/07/2004 3:12:21 PM PDT by AMDG&BVMH
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To: gubamyster

"This deduction stimulated growth in the economy by stimulating business equipment purchases."

Exactly. Buying SUVs is good for the economy. Tell it to the auto workers.


17 posted on 10/07/2004 3:13:47 PM PDT by AMDG&BVMH
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To: ChuckShick

Rats. I was going to buy one in 2005.

Now I won't.

Tax policy changes have unintended consequences.


18 posted on 10/07/2004 3:29:07 PM PDT by Atlas Sneezed (Your Friendly Freeper Patent Attorney)
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To: Beelzebubba

And I was wanting to buy one of those new Escape Hybrid SUVs... dang.


19 posted on 10/07/2004 3:43:41 PM PDT by pcgTheDestroyer
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To: ChuckShick

Don't get too upset by this. This loophole was mostly used by lawyers and doctors as a way to write off their family Hummer or Navigator.


20 posted on 10/07/2004 3:56:54 PM PDT by Modernman (Giving money and power to government is like giving whiskey and car keys to teenage boys. - P.J.)
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