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To: thirst4truth
Tax credit or deduction? There's an important difference.

Am I mistaken that Congress mandated that carmakers make a certain proportion of their production have a certain mileage -- or that their entire production average a certain mileage? If I am not, then for all those pickups and other truck framed vehicles they would have to make a proportionate number of low mileage vehicles, whether or not they thought they would sell.

So I understood it anyway.

13 posted on 12/16/2008 8:36:31 AM PST by Mad Dawg (Oh Mary, conceived without sin, pray for us who have recourse to thee.)
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To: Mad Dawg
This is what my CPA said verbatim,

"Buying a new heavy SUV by Dec. 31 can generate a slew of tax breaks. Look at the Write-offs if your business buys a new $50,000 SUV with a loaded weight of more than 6,000 pounds and places it into service before the end of this year: the firm can expense $25,000, the maximum for vehicles. And it can claim $15,000 half the remaining $25,000 cost as bonus depreciation. Plus regular depreciation is 20% of the 12,500 balance of the cost. The total first year write off is $40,000 assuming 100% business use. Used heavy SUV or trucks don't receive bonus depreciation."

Its a deduction, a very significant one. Encouraging GM to make lots and lots of 6,000 GVW vehicles.

14 posted on 12/16/2008 9:50:48 AM PST by thirst4truth
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