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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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To: thirst4truth
Okay, a deduction from income before computing tax. That's different from a credit.

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

But that doesn't address the consequent requirement to make lots of low mileage vehicles to bring their averaged fleet mileage down. I THINK my point still stands.

15 posted on 12/16/2008 12:20:08 PM PST by Mad Dawg (Oh Mary, conceived without sin, pray for us who have recourse to thee.)
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