Does the Jeep quailify for the heavey SUV write off under Section 179 for up to $25,000 if i purchase it before the end of this year?

I just searched the forum and the internet and found a couple of answers to my own question. Found 2 things that say its 6100 GVWR so it is a write off, then found 2 sites that says its 5900 GVWR so then it wouldnt qualify. Please let me know if any of you have a 100% sure answer.

Does the Jeep quailify for the heavey SUV write off under Section 179 for up to $25,000 if i purchase it before the end of this year?
The GVWR is in excess of 6,000 pounds. It would qualify.

I am taking the deduction this year. I am a C.P.A. and deal with tax controversy all of the time.

so what exactly do I need to take to my accountant

Whoa yeah...what are you guys talking about? Can someone please explain.

Here Is the link i read to understand it:
http://www.smartmoney.com/tax/workbusiness/index.cfm?story=equipment&adSection=smallbusiness&nav=smallbusiness

I'm a real estate investor so i should be fine writing it off as a company car.

Whoa yeah...what are you guys talking about? Can someone please explain.
Sport Utility Vehicles that have a Gross Vehicle Weight Rating (GVWR) in excess of 6,000 pounds can be depreciated for tax purposes more aggressively than a regular passenger vehicle, provided you are using the vehicle for business purposes.

You can look at the door sticker to see the GVWR. If you took a picture of it, it would also have the vehicles ID number, so you would be specifically identifying your vehicle.

You can also look at KBB.com to take a look at a vehicle's specifications. That's a page you can print out to give to your tax professional.

This is not a difficult thing to do. The law allows for it, so you are not doing anything aggressive. Provided that you use the vehicle for business, and there is a tax benefit to doing so, taking the additional Section 179 deduction is a great way to go.

I bought mine as a company car and was told by my accountant that it does qualify for the special heavy SUV write off.

Ok This is great information

Thanks Sheri for the tip!:D

Crap. I wish I had a small business now.

Ok This is great information

Thanks Sheri for the tip!:D
You are welcome.

This is another reason why, unless you have absolutely no money to put down, leasing these vehicles is silly.

Crap. I wish I had a small business now.

Not very hard to have one on paper.....

Not very hard to have one on paper.....
Yes, but you have to have income from the business to take the Section 179 expense. You can't use it to create or enhance a net operating loss.

I don't advocate depreciating vehicles that are deducted through employee business expenses. You only get part of the deduction, but have to pick up all of the taxable gain, if any, when you sell the vehicle.

Hello everyone! This is my first post here, but been a long time lurker.. We are very close to pulling the trigger on a new GC SRT8. Now I was going to just buy it outright, but I found this thread and if there's a tax write off for businesses, this may be an option for us. The wife owns her own business (a salon). Anyone know if this would work for us? Thanks!

Hello everyone! This is my first post here, but been a long time lurker.. We are very close to pulling the trigger on a new GC SRT8. Now I was going to just buy it outright, but I found this thread and if there's a tax write off for businesses, this may be an option for us. The wife owns her own business (a salon). Anyone know if this would work for us? Thanks!

gotta go pickup supplies at a salon-like costco place right? You need to get there quickly too!

If this vehicle weighs 4800, and the vehicle must weigh 6000 for the write off...I guess I'm 1200 lbs. from understanding. I asked my accountant and she said defintely NO! I would be very careful before I wrote this vehicle off guys.

If this vehicle weighs 4800, and the vehicle must weigh 6000 for the write off...I guess I'm 1200 lbs. from understanding. I asked my accountant and she said defintely NO! I would be very careful before I wrote this vehicle off guys.
Actual weight of the vehicle does not equal GVWR (Gross Vehicle Weight Rating) which is what determines the tax write-off. If your accountant doesn't understand the difference.......

If this vehicle weighs 4800, and the vehicle must weigh 6000 for the write off...I guess I'm 1200 lbs. from understanding. I asked my accountant and she said defintely NO! I would be very careful before I wrote this vehicle off guys.

According to KBB, the GVWR for the GC SRT8 is: 6150

I also found that in order for us to qualify for section 179, we need to have a home office used exclusively for her management and adminsitrative functions outside of her salon (not a problem). This is looking more and more like a valid option for us! Yay!

Actual weight of the vehicle does not equal GVWR (Gross Vehicle Weight Rating) which is what determines the tax write-off. If your accountant doesn't understand the difference.......

Yep, you guys are right. The sticker on the door definitely says 6,150 GVWR.

http://www.kbb.com/KBB/NewCars/Specifications.aspx

Yep, you guys are right. The sticker on the door definitely says 6,150 GVWR.

http://www.kbb.com/KBB/NewCars/Specifications.aspx
Believe me, I would not recommend this unless it made sense. I am a tax professional (CA Licensed CPA) and in the right circumstance, can save significant dollars.

The GVWR is in excess of 6,000 pounds. It would qualify.

I am taking the deduction this year. I am a C.P.A. and deal with tax controversy all of the time.

Sheri:

Funny thing is that the GVR for the GCSRT8 was above 6000# for most of 2006 (along with a 3500#lb tow rating), and THEN they changed it along with the lower tow rating late in 2006 on the WK Jeep site. How do you resolve that at an IRS audit, since I had to deal with that very same question?

Sheri:

Funny thing is that the GVR for the GCSRT8 was above 6000# for most of 2006 (along with a 3500#lb tow rating), and THEN they changed it along with the lower tow rating late in 2006 on the WK Jeep site. How do you resolve that at an IRS audit, since I had to deal with that very same question?

Interesting....in WK specs for 2006-2007 I see the gvwr of 5600 lbs., but still see 3500lb tow rating.......can you point out where you see this has changed?

thanks.

Sheri:

Funny thing is that the GVR for the GCSRT8 was above 6000# for most of 2006 (along with a 3500#lb tow rating), and THEN they changed it along with the lower tow rating late in 2006 on the WK Jeep site. How do you resolve that at an IRS audit, since I had to deal with that very same question?
You fight it by pointing out the GVWR listed on the ID tag on your door, not what advertised specs are.

You fight it by pointing out the GVWR listed on the ID tag on your door, not what advertised specs are.
Exactly my point. When I guide clients to taking this deduction, I have them look at some of the literature out there, but the door sticker is going to be the proof. A picture of that is what goes in the file.

Do you have to keep mileage record of everywhere you go, and whats company and personal? :confused:

Just a heads up...this is from CCH (a tax research provider) the IRS takes a different position on the GVWR vs whether it is based on a truck platform or not (it doesn't seem to impact our GC SRT8's):

CCH-EXP, 2007FED ¶15,108.022, Luxury Autos --Listed Property Limitations: Luxury Automobiles: Chart of trucks, vans, and SUVs with GVWR greater than 6,000 pounds



Luxury Autos --Listed Property Limitations: Luxury Automobiles: Chart of trucks, vans, and SUVs with GVWR greater than 6,000 pounds

Trucks and vans with a gross vehicle weight rating (GVWR) greater than 6,000 pounds are not subject to the annual depreciation caps under the luxury car rules (¶15,108.021). Such vehicles are excluded from the definition of a passenger automobile to which the depreciation caps apply. As explained below, the IRS maintains that an SUV or van is not exempt from the depreciation caps, regardless of its weight, unless it is built on a truck chassis. Effective for vehicles placed in service after October 22, 2004 and that are not subject to the caps, the Code Sec. 179 expense allowance is limited to $25,000 in the case of (1) an SUV, (2) a passenger van that does not seat more than 9 persons behind the passenger seat, and (3) a truck with an interior cargo bed length less than 6 feet. Most cargo vans are exempt from the $25,000 limit. The $25,000 limit is discussed below.

Table I below lists trucks in excess of 6,000 lbs. GVWR.

Table II below lists SUVs in excess of 6,000 lbs. GVWR.

Table III below lists vans in excess of 6,000 lbs. GVWR.

Table IV below lists trucks in excess of 6,000 lbs GVWR with an interior bed length under 6 feet.

These tables were compiled by CCH Law Editors primarily from information obtained at carsdirect.com and do not necessarily include all qualifying vehicles. Tables I, II, and III only list model years 2002-2006. Table IV only lists model years 2004-2006. Information for earlier years may be obtained at carsdirect.com by clicking on the research tab.

Taxpayers should always independently verify the GVWR, chassis construction, and bed length of a truck before making any purchase or claiming exemption from the depreciation limitations.

Treatment of heavy SUVs and vans on a unibody platform. In Rev. Proc. 2003-75, the IRS announced a separate set of depreciation limitations for trucks or vans which do not weigh more than 6,000 pounds (see ¶15,108.023). Within Section 2.01 of this Revenue Procedure, the IRS defined a vehicle, including an SUV or a minivan, as a truck or van only if it is built on a truck chassis. SUVs and vans that are built on a car chassis, therefore, do not fall within this definition.

Although Rev. Proc. 2003-75 (Section 2.01) states that the definition applies "for purposes of this revenue procedure," the IRS used the same definition in the instructions to Form 4562 and in IRS Publication 463 in the context of determining whether an SUV with a GVWR in excess of 6000 pounds is a truck or a van. By extending the definition in this manner, the IRS seems to imply that SUVs built on a car chassis (i.e., unibody) are not eligible for the exemption from the annual depreciation caps under the luxury car rules. Thus, it appears that the IRS will contend the an SUV or van built on a car chassis will be subject to the luxury car depreciation limitations regardless of whether the GVWR exceeds 6,000 pounds. The list of trucks, SUVs, and vans with a GVWR in excess of 6,000 pounds below identifies SUVs and vans that are built on a car chassis.

$25,000 Code Section 179 limitation on heavy SUVs, heavy trucks with a bed under 6 feet in length, and certain heavy vans placed in service after October 22, 2004. Effective for vehicles placed in service after October 22, 2004, the maximum Code Sec. 179 expense allowance that may be claimed on a "sport utility vehicle" that is exempt from the luxury car depreciation limitations is limited to $25,000 (Code Sec. 179(b)(6), as added by the American Jobs Creation Act of 2004).

The term "sport utility vehicle" is defined as any 4-wheeled vehicle that is primarily designed or which can be used to carry passengers over public streets, roads, or highways, which is not subject to the depreciation limitations, and which is rated at not more than 14,000 pounds gross vehicle weight. Because this definition is broad enough to encompass most trucks, an exception is made for vehicles which have an open cargo area of at least 6 feet in interior length or a capped cargo area of that length if the cargo area was designed for use as an open area and is not readily accessible directly from the passenger compartment. There are, in fact, certain heavy pick-up trucks with "extended," "crew," or "quad cabs" that do not have the required interior bed-length of 6 feet. 2004-2006 truck models with a bed length under six feet (and, therefore, subject to the $25,000 section 179 limit) are listed in Table IV below.

The definition of a sport utility vehicle also encompasses certain heavy vans. Exceptions, however, are made for a vehicle (1) designed to have a seating capacity of more than 9 passengers behind the driver's seat (e.g., certain large commuter vans) or (2) which has an integral enclosure, fully enclosing the driver compartment, does not have seating behind the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield (e.g., certain cargo vans).

Gross vehicle weight rating defined and how to find it. Gross vehicle weight rating is the maximum allowable weight of a fully loaded vehicle (i.e., weight of vehicle, including vehicle options, passengers, cargo, gas, oil, coolant, etc.). Generally, the GVWR is equal to the sum of the vehicle's curb weight and payload capacity. The GVWR of a particular vehicle is usually located on the vehicle's Safety Compliance Certification Label, which is attached to the left front door lock facing or the door latch post pillar. The tables below are based on information found at http://www.carsdirect.com/home. Click on the research tab. This site also contains information for model years not covered in the Tables.

TABLE I

TRUCKS WITH GVWR OVER 6000 POUNDS

Cadillac

Escalade EXT (2002-2007) (beds under 6', see Table IV)

Chevrolet

Avalanche (2002-2007) (beds under 6', see Table IV)

Silverado (2002-2007) (certain beds under 6', see Table IV)

SSR (2002-2006) (combined unibody on frame construction; may not qualify, refer to discussion above) (beds under 6', see Table IV) (discontinued in 2007)

Dodge

Dakota (certain models) (certain beds under 6', see Table IV)

2002 --All quad cabs

2003 --All quad cabs and all club cabs (4x2 and 4x4)

2004 --All quad cabs and all 4x4 club cabs

2005-2007 --All quad cabs and all club cabs

Ram (2002-2007)

Ford

F-150 (2002-2007) (certain beds under 6', see Table IV)

F-250 (2002-2007)

F-350 (2002-2007)

GMC

Sierra 1500 (2002-2007) (certain beds under 6', see Table IV)

Sierra Classic 1500 (2007) (certain beds under 6', see Table IV)

Sierra 1500HD (2002, 2003, no 2004 production, 2005, 2006)

Sierra Classic 1500HD (2007)

Sierra 2500 (2002, 2003, 2004, discontinued in 2005)

Sierra 2500HD (2002-2006)

Sierra Classic 2500HD (2007)

Sierra 3500 (2002-2006)

Sierra Classic 3500 (2007)

Sierra Denali (2002-2007) (certain beds under 6', see Table IV)

Honda

Ridgeline (2006-2007) (integrated closed-box frame with unibody construction; may not qualify, refer to discussion above) (bed under 6')

Hummer

H2 SUT (2005-2007) (bed under 6')

Lincoln

Blackwood Pickup (2002)

Mark LT (2006-2007)

Mitsubishi

Raider (2006-2007) (certain beds under 6', see Table IV)

Nissan

Titan (2004-2007) (certain beds under 6', see Table IV)

Toyota

Tundra (certain models)

2002 --All models qualify except (1) Base 2dr 4x2 Regular Cab, (2) SR5 V-6 4dr 4x2 Access Cab (V-8 version qualifies), and (3) SR5 V-6 4dr 4x4 Access Cab* (GVW is exactly 6,000 pounds (V-8 version qualifies))

2003 --All models qualify except (1) Base 2dr 4x2 Regular Cab, (2) SR5 V-6 4dr 4x2 Access Cab (V8 version qualifies), and (3) SR5 V6 4dr 4x4 Access Cab* (GVW is exactly 6,000 pounds (V-8 version qualifies))

2004 --All models qualify except (1) models with Access Cab Stepside (however, some websites report a GVWR of 6010), (2) Base 2dr 4x2 regular cab, (3) SR5 V-6 4dr 4x2 Access Cab (V-8 version qualifies), and (4) SR5 V6 4dr 4x4 Access Cab* (GVW is exactly 6,000 pounds (V-8 version qualifies))

2005 and 2006 --All models qualify except: (1) Base V-6 2 dr. 4x2 Regular Cab and (2) SR5 V-6 4 dr. 4x2 Access Cab

2007 model is redesigned and GVWR unavailable at press time



*A vehicle must have a GVWR in excess of 6,000 pounds to qualify for exemption from caps.

TABLE II

SUVs and CROSSOVERS GVWR OVER 6000 POUNDS

BMW

X5 (2002-2007) (unibody construction; may not qualify, refer to discussion above)

Cadillac

Escalade and Escalade ESV (2002-2007)

SRX (2004-2007) (unibody construction; may not qualify, refer to discussion above)

Chevrolet

Suburban (2002-2007)

Tahoe (2002-2007)

TrailBlazer Ext (2002-2006)

TrailBlazer 2WD SS and AWD DD (2007)

Dodge

Durango (2004-2007)

Ford

Excursion (2002-2005, discontinued in 2006)

Expedition (2002-2007)

Explorer (2006-2007)

Explorer Sport Trac (2007)

GMC

Envoy XL (2002-2006)

Envoy XUV (2004, 2005, discontinued in 2006)

Envoy Denali (2005-2007)

Yukon, Yukon XL, Yukon Denali (2002-2007)

Hummer

Hummer H1 (2003-2006)

Hummer H2 (2003-2007)

Infiniti

QX56 (2005-2007)

Jeep

Grand Cherokee (2005-2007) (all models other than Laredo)

Commander (2006-2007) (unibody construction; may not qualify, refer to discussion above)

Isuzu

Ascender (2003 all models, 2004-2006 (7-passenger models))

Land Rover

Discovery (2002-2004, discontinued in 2005)

LR3 (2005-2007) (unibody mounted on truck frame; may not qualify, refer to discussion above)

Range Rover (2002-2007)

Range Rover Sport (2006-2007)

Lexus

GX470 (2004-2007)

(2003 GX470 does not qualify per manufacturer's recall)

LX470 (2002-2007)

Lincoln

Aviator (2003-2005)

Navigator (2002-2007)

Mercedes-Benz

G55 (2004, 2005)

G500 (2002-2006)

GL450 (2007) (unibody construction; may not qualify, refer to discussion above)

ML55 (2002, 2003)

ML63 (2007) (unibody construction; may not qualify, refer to discussion above)

ML320 (2007 ) (unibody construction; may not qualify, refer to discussion above)

ML320 (2002, 2003)

ML350 (2006-2007) (unibody construction, may not qualify, refer to discussion above)

ML350 (2003-2005)

ML500 (2006-2007) (unibody construction, may not qualify, refer to discussion above)

ML500 (2002-2005)

R63 (2007) (unibody construction; may not qualify, refer to discussion above)

R320 (2007) (unibody construction, may not qualify, refer to discussion above)

R350 (2006-2007) (unibody construction, may not qualify, refer to discussion above)

R500 (2006-2007) (unibody construction, may not qualify, refer to discussion above)

Mercury

Mountaineer (2006-2007)

Mitsubishi

Montero (unibody construction; may not qualify, refer to discussion above) (2003-2005) (2002 and 2006 models have GVWR less than 6,000)

Montero Sport does not qualify

Nissan

Armada (2005-2007) (introduced in 2004 as the Pathfinder Armada; renamed in 2005 as Armada)

Pathfinder Armada (2004)

Porsche

Cayenne (2003-2006) (unibody construction; may not qualify; refer to discussion above)

Saab

9-7x (2005-2007)

Toyota

4Runner (certain models)

2005-2007-SR5 Sport V8 4x4; SR5 V8 4x4; Limited V8 4x4

Land Cruiser (2002-2007)

Sequoia (2002-2007)

Volkswagen

Touareg (unibody construction; may not qualify; refer to discussion above) (2004-2007)

Volvo

XC90 (certain models) (unibody construction; may not qualify; refer to discussion above)

2003-T6 A SR AWD

2004-2.5 TA AWD and T6 A AWD

2005-V8 AWD SR 4dr

2006-V8 4dr AWD

2007-V8 4dr

TABLE III

VANS GVWR OVER 6000 POUNDS

Chevrolet

Astro (certain passenger models listed below)

2002 --LS all-wheel drive passenger van

2002, 2003, 2004, 2005 --LT with 1SE all wheel drive passenger van

2003, 2004, 2005 --Base all-wheel drive passenger van

2003, 2004, 2005 --LS with 1SC all wheel drive passenger van

Express (2002-2007)

Express LT (2002)

Dodge

Ram Van (unibody construction; may not qualify; refer to discussion above) (1500, 2500, 3500) (2002-2003)

Ram Wagon Van (unibody construction; may not qualify; refer to discussion above) (1500, 2500, 3500) (2002)

Sprinter Van (unibody construction; may not qualify; refer to discussion above) (2500, 3500) (2003-2006)

Ford

Econoline

E-150 (2002-2007)

E-250 (2002-2007)

E-350 (2002-2007)

GMC

Safari (certain models)

SLE AWD passenger van (2002)

SLT with 1SE AWD passenger van (2002)

Base AWD passenger van (2003-2005)

SLE with 1SC AWD passenger van (2003-2005)

SLT with 1SE AWD passenger van (2003-2005)

Savana (2002-2007)

TABLE IV --Trucks Subject to $25,000 Expensing Limitation

TRUCKS GVWR OVER 6,000 & BED LENGTH UNDER 6 FEET

Cadillac

Escalade EXT (2004-2007)

Chevrolet

Avalanche (2004-2007)

SSR (2004-2006) (combined unibody on frame construction; may not qualify, refer to discussion above)

Silverado 1500 Crew Cabs (2004-2005)

Silverado 1500 crew cabs and certain extended cabs (2006)

Silverado 1500 crew cabs 2WD and certain extended cabs (2007)

Dodge

Dakota Quad Cabs (2004-2007)

Ford

Explorer Trac (2007)

F-150 Super Cab Styleside with 5.5 foot box* (2004-2007)

F-150 SuperCrew Cab Styleside with 5.5 foot box (2004-2007)

*Super Cab Stylesides are available in 5.5, 6.5, or 8.5 foot box

GMC

Sierra 1500 Crew Cabs (2004-2007)

Sierra Classic 1500 Crew Cabs (2007)

Sierra 1500 Extended Cabs with 5.75 foot box (2006-2007)

Sierra Classic 1500 Extended Cabs with 5.75 foot box (2007)

Sierra Denali (2005-2007)

Honda

Ridgeline (2006-2007) (integrated closed-box frame with unibody construction; may not qualify, refer to discussion above)

Hummer

H2 SUT (2005-2007)

Lincoln

Mark LT (2006-2007)

Mitsubishi

Raider Double Cabs (2006-2007)

Nissan

Titan Crew Cabs (2004-2007)

Sources: Gross vehicle weight ratings and bed lengths obtained from information found at http://www.carsdirect.com and http://autos.yahoo.com (research tab). This site also has information for earlier models.

My dad owns a pretty big company, and i was talking to him about putting my car in the companys name so we could write it off. According to his accountant we have to write down all the miles that we used for business and all the miles that were personal, and what we did, where we went, and on what days we did this. Seems like to big of a hassle just to write off a couple thousand... any input?

Hassle is relative to the value of a dollar.

I am not eligible cause he vehicle is in my name and not the company. DAMMIT! screwed again :-P

Hassle is relative to the value of a dollar.

I am not eligible cause he vehicle is in my name and not the company. DAMMIT! screwed again :-P


Exactly but in my situation am i going to keep a book and write down everything i do for 2,000 at the end of the year... i think not.

You fight it by pointing out the GVWR listed on the ID tag on your door, not what advertised specs are.

Great suggestion. Didn't realize that it was there. Thanks

Just a heads up...this is from CCH (a tax research provider) the IRS takes a different position on the GVWR vs whether it is based on a truck platform or not (it doesn't seem to impact our GC SRT8's):

CCH-EXP, 2007FED ¶15,108.022, Luxury Autos --Listed Property Limitations: Luxury Automobiles: Chart of trucks, vans, and SUVs with GVWR greater than 6,000 pounds



Luxury Autos --Listed Property Limitations: Luxury Automobiles: Chart of trucks, vans, and SUVs with GVWR greater than 6,000 pounds

Trucks and vans with a gross vehicle weight rating (GVWR) greater than 6,000 pounds are not subject to the annual depreciation caps under the luxury car rules (¶15,108.021). Such vehicles are excluded from the definition of a passenger automobile to which the depreciation caps apply. As explained below, the IRS maintains that an SUV or van is not exempt from the depreciation caps, regardless of its weight, unless it is built on a truck chassis. Effective for vehicles placed in service after October 22, 2004 and that are not subject to the caps, the Code Sec. 179 expense allowance is limited to $25,000 in the case of (1) an SUV, (2) a passenger van that does not seat more than 9 persons behind the passenger seat, and (3) a truck with an interior cargo bed length less than 6 feet. Most cargo vans are exempt from the $25,000 limit. The $25,000 limit is discussed below.

Table I below lists trucks in excess of 6,000 lbs. GVWR.

Table II below lists SUVs in excess of 6,000 lbs. GVWR.

Table III below lists vans in excess of 6,000 lbs. GVWR.

Table IV below lists trucks in excess of 6,000 lbs GVWR with an interior bed length under 6 feet.

These tables were compiled by CCH Law Editors primarily from information obtained at carsdirect.com and do not necessarily include all qualifying vehicles. Tables I, II, and III only list model years 2002-2006. Table IV only lists model years 2004-2006. Information for earlier years may be obtained at carsdirect.com by clicking on the research tab.

Taxpayers should always independently verify the GVWR, chassis construction, and bed length of a truck before making any purchase or claiming exemption from the depreciation limitations.

Treatment of heavy SUVs and vans on a unibody platform. In Rev. Proc. 2003-75, the IRS announced a separate set of depreciation limitations for trucks or vans which do not weigh more than 6,000 pounds (see ¶15,108.023). Within Section 2.01 of this Revenue Procedure, the IRS defined a vehicle, including an SUV or a minivan, as a truck or van only if it is built on a truck chassis. SUVs and vans that are built on a car chassis, therefore, do not fall within this definition.

Although Rev. Proc. 2003-75 (Section 2.01) states that the definition applies "for purposes of this revenue procedure," the IRS used the same definition in the instructions to Form 4562 and in IRS Publication 463 in the context of determining whether an SUV with a GVWR in excess of 6000 pounds is a truck or a van. By extending the definition in this manner, the IRS seems to imply that SUVs built on a car chassis (i.e., unibody) are not eligible for the exemption from the annual depreciation caps under the luxury car rules. Thus, it appears that the IRS will contend the an SUV or van built on a car chassis will be subject to the luxury car depreciation limitations regardless of whether the GVWR exceeds 6,000 pounds. The list of trucks, SUVs, and vans with a GVWR in excess of 6,000 pounds below identifies SUVs and vans that are built on a car chassis.

$25,000 Code Section 179 limitation on heavy SUVs, heavy trucks with a bed under 6 feet in length, and certain heavy vans placed in service after October 22, 2004. Effective for vehicles placed in service after October 22, 2004, the maximum Code Sec. 179 expense allowance that may be claimed on a "sport utility vehicle" that is exempt from the luxury car depreciation limitations is limited to $25,000 (Code Sec. 179(b)(6), as added by the American Jobs Creation Act of 2004).

The term "sport utility vehicle" is defined as any 4-wheeled vehicle that is primarily designed or which can be used to carry passengers over public streets, roads, or highways, which is not subject to the depreciation limitations, and which is rated at not more than 14,000 pounds gross vehicle weight. Because this definition is broad enough to encompass most trucks, an exception is made for vehicles which have an open cargo area of at least 6 feet in interior length or a capped cargo area of that length if the cargo area was designed for use as an open area and is not readily accessible directly from the passenger compartment. There are, in fact, certain heavy pick-up trucks with "extended," "crew," or "quad cabs" that do not have the required interior bed-length of 6 feet. 2004-2006 truck models with a bed length under six feet (and, therefore, subject to the $25,000 section 179 limit) are listed in Table IV below.

The definition of a sport utility vehicle also encompasses certain heavy vans. Exceptions, however, are made for a vehicle (1) designed to have a seating capacity of more than 9 passengers behind the driver's seat (e.g., certain large commuter vans) or (2) which has an integral enclosure, fully enclosing the driver compartment, does not have seating behind the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield (e.g., certain cargo vans).

Gross vehicle weight rating defined and how to find it. Gross vehicle weight rating is the maximum allowable weight of a fully loaded vehicle (i.e., weight of vehicle, including vehicle options, passengers, cargo, gas, oil, coolant, etc.). Generally, the GVWR is equal to the sum of the vehicle's curb weight and payload capacity. The GVWR of a particular vehicle is usually located on the vehicle's Safety Compliance Certification Label, which is attached to the left front door lock facing or the door latch post pillar. The tables below are based on information found at http://www.carsdirect.com/home. Click on the research tab. This site also contains information for model years not covered in the Tables.

TABLE I

TRUCKS WITH GVWR OVER 6000 POUNDS

Cadillac

Escalade EXT (2002-2007) (beds under 6', see Table IV)

Chevrolet

Avalanche (2002-2007) (beds under 6', see Table IV)

Silverado (2002-2007) (certain beds under 6', see Table IV)

SSR (2002-2006) (combined unibody on frame construction; may not qualify, refer to discussion above) (beds under 6', see Table IV) (discontinued in 2007)

Dodge

Dakota (certain models) (certain beds under 6', see Table IV)

2002 --All quad cabs

2003 --All quad cabs and all club cabs (4x2 and 4x4)

2004 --All quad cabs and all 4x4 club cabs

2005-2007 --All quad cabs and all club cabs

Ram (2002-2007)

Ford

F-150 (2002-2007) (certain beds under 6', see Table IV)

F-250 (2002-2007)

F-350 (2002-2007)

GMC

Sierra 1500 (2002-2007) (certain beds under 6', see Table IV)

Sierra Classic 1500 (2007) (certain beds under 6', see Table IV)

Sierra 1500HD (2002, 2003, no 2004 production, 2005, 2006)

Sierra Classic 1500HD (2007)

Sierra 2500 (2002, 2003, 2004, discontinued in 2005)

Sierra 2500HD (2002-2006)

Sierra Classic 2500HD (2007)

Sierra 3500 (2002-2006)

Sierra Classic 3500 (2007)

Sierra Denali (2002-2007) (certain beds under 6', see Table IV)

Honda

Ridgeline (2006-2007) (integrated closed-box frame with unibody construction; may not qualify, refer to discussion above) (bed under 6')

Hummer

H2 SUT (2005-2007) (bed under 6')

Lincoln

Blackwood Pickup (2002)

Mark LT (2006-2007)

Mitsubishi

Raider (2006-2007) (certain beds under 6', see Table IV)

Nissan

Titan (2004-2007) (certain beds under 6', see Table IV)

Toyota

Tundra (certain models)

2002 --All models qualify except (1) Base 2dr 4x2 Regular Cab, (2) SR5 V-6 4dr 4x2 Access Cab (V-8 version qualifies), and (3) SR5 V-6 4dr 4x4 Access Cab* (GVW is exactly 6,000 pounds (V-8 version qualifies))

2003 --All models qualify except (1) Base 2dr 4x2 Regular Cab, (2) SR5 V-6 4dr 4x2 Access Cab (V8 version qualifies), and (3) SR5 V6 4dr 4x4 Access Cab* (GVW is exactly 6,000 pounds (V-8 version qualifies))

2004 --All models qualify except (1) models with Access Cab Stepside (however, some websites report a GVWR of 6010), (2) Base 2dr 4x2 regular cab, (3) SR5 V-6 4dr 4x2 Access Cab (V-8 version qualifies), and (4) SR5 V6 4dr 4x4 Access Cab* (GVW is exactly 6,000 pounds (V-8 version qualifies))

2005 and 2006 --All models qualify except: (1) Base V-6 2 dr. 4x2 Regular Cab and (2) SR5 V-6 4 dr. 4x2 Access Cab

2007 model is redesigned and GVWR unavailable at press time



*A vehicle must have a GVWR in excess of 6,000 pounds to qualify for exemption from caps.

TABLE II

SUVs and CROSSOVERS GVWR OVER 6000 POUNDS

BMW

X5 (2002-2007) (unibody construction; may not qualify, refer to discussion above)

Cadillac

Escalade and Escalade ESV (2002-2007)

SRX (2004-2007) (unibody construction; may not qualify, refer to discussion above)

Chevrolet

Suburban (2002-2007)

Tahoe (2002-2007)

TrailBlazer Ext (2002-2006)

TrailBlazer 2WD SS and AWD DD (2007)

Dodge

Durango (2004-2007)

Ford

Excursion (2002-2005, discontinued in 2006)

Expedition (2002-2007)

Explorer (2006-2007)

Explorer Sport Trac (2007)

GMC

Envoy XL (2002-2006)

Envoy XUV (2004, 2005, discontinued in 2006)

Envoy Denali (2005-2007)

Yukon, Yukon XL, Yukon Denali (2002-2007)

Hummer

Hummer H1 (2003-2006)

Hummer H2 (2003-2007)

Infiniti

QX56 (2005-2007)

Jeep

Grand Cherokee (2005-2007) (all models other than Laredo)

Commander (2006-2007) (unibody construction; may not qualify, refer to discussion above)

Isuzu

Ascender (2003 all models, 2004-2006 (7-passenger models))

Land Rover

Discovery (2002-2004, discontinued in 2005)

LR3 (2005-2007) (unibody mounted on truck frame; may not qualify, refer to discussion above)

Range Rover (2002-2007)

Range Rover Sport (2006-2007)

Lexus

GX470 (2004-2007)

(2003 GX470 does not qualify per manufacturer's recall)

LX470 (2002-2007)

Lincoln

Aviator (2003-2005)

Navigator (2002-2007)

Mercedes-Benz

G55 (2004, 2005)

G500 (2002-2006)

GL450 (2007) (unibody construction; may not qualify, refer to discussion above)

ML55 (2002, 2003)

ML63 (2007) (unibody construction; may not qualify, refer to discussion above)

ML320 (2007 ) (unibody construction; may not qualify, refer to discussion above)

ML320 (2002, 2003)

ML350 (2006-2007) (unibody construction, may not qualify, refer to discussion above)

ML350 (2003-2005)

ML500 (2006-2007) (unibody construction, may not qualify, refer to discussion above)

ML500 (2002-2005)

R63 (2007) (unibody construction; may not qualify, refer to discussion above)

R320 (2007) (unibody construction, may not qualify, refer to discussion above)

R350 (2006-2007) (unibody construction, may not qualify, refer to discussion above)

R500 (2006-2007) (unibody construction, may not qualify, refer to discussion above)

Mercury

Mountaineer (2006-2007)

Mitsubishi

Montero (unibody construction; may not qualify, refer to discussion above) (2003-2005) (2002 and 2006 models have GVWR less than 6,000)

Montero Sport does not qualify

Nissan

Armada (2005-2007) (introduced in 2004 as the Pathfinder Armada; renamed in 2005 as Armada)

Pathfinder Armada (2004)

Porsche

Cayenne (2003-2006) (unibody construction; may not qualify; refer to discussion above)

Saab

9-7x (2005-2007)

Toyota

4Runner (certain models)

2005-2007-SR5 Sport V8 4x4; SR5 V8 4x4; Limited V8 4x4

Land Cruiser (2002-2007)

Sequoia (2002-2007)

Volkswagen

Touareg (unibody construction; may not qualify; refer to discussion above) (2004-2007)

Volvo

XC90 (certain models) (unibody construction; may not qualify; refer to discussion above)

2003-T6 A SR AWD

2004-2.5 TA AWD and T6 A AWD

2005-V8 AWD SR 4dr

2006-V8 4dr AWD

2007-V8 4dr

TABLE III

VANS GVWR OVER 6000 POUNDS

Chevrolet

Astro (certain passenger models listed below)

2002 --LS all-wheel drive passenger van

2002, 2003, 2004, 2005 --LT with 1SE all wheel drive passenger van

2003, 2004, 2005 --Base all-wheel drive passenger van

2003, 2004, 2005 --LS with 1SC all wheel drive passenger van

Express (2002-2007)

Express LT (2002)

Dodge

Ram Van (unibody construction; may not qualify; refer to discussion above) (1500, 2500, 3500) (2002-2003)

Ram Wagon Van (unibody construction; may not qualify; refer to discussion above) (1500, 2500, 3500) (2002)

Sprinter Van (unibody construction; may not qualify; refer to discussion above) (2500, 3500) (2003-2006)

Ford

Econoline

E-150 (2002-2007)

E-250 (2002-2007)

E-350 (2002-2007)

GMC

Safari (certain models)

SLE AWD passenger van (2002)

SLT with 1SE AWD passenger van (2002)

Base AWD passenger van (2003-2005)

SLE with 1SC AWD passenger van (2003-2005)

SLT with 1SE AWD passenger van (2003-2005)

Savana (2002-2007)

TABLE IV --Trucks Subject to $25,000 Expensing Limitation

TRUCKS GVWR OVER 6,000 & BED LENGTH UNDER 6 FEET

Cadillac

Escalade EXT (2004-2007)

Chevrolet

Avalanche (2004-2007)

SSR (2004-2006) (combined unibody on frame construction; may not qualify, refer to discussion above)

Silverado 1500 Crew Cabs (2004-2005)

Silverado 1500 crew cabs and certain extended cabs (2006)

Silverado 1500 crew cabs 2WD and certain extended cabs (2007)

Dodge

Dakota Quad Cabs (2004-2007)

Ford

Explorer Trac (2007)

F-150 Super Cab Styleside with 5.5 foot box* (2004-2007)

F-150 SuperCrew Cab Styleside with 5.5 foot box (2004-2007)

*Super Cab Stylesides are available in 5.5, 6.5, or 8.5 foot box

GMC

Sierra 1500 Crew Cabs (2004-2007)

Sierra Classic 1500 Crew Cabs (2007)

Sierra 1500 Extended Cabs with 5.75 foot box (2006-2007)

Sierra Classic 1500 Extended Cabs with 5.75 foot box (2007)

Sierra Denali (2005-2007)

Honda

Ridgeline (2006-2007) (integrated closed-box frame with unibody construction; may not qualify, refer to discussion above)

Hummer

H2 SUT (2005-2007)

Lincoln

Mark LT (2006-2007)

Mitsubishi

Raider Double Cabs (2006-2007)

Nissan

Titan Crew Cabs (2004-2007)

Sources: Gross vehicle weight ratings and bed lengths obtained from information found at http://www.carsdirect.com and http://autos.yahoo.com (research tab). This site also has information for earlier models.

I just wanted to make this post a little longer!!! :D :eek: :D

Exactly!! Too bad this is not three years ago and we could have taken the whole cost basis.

Man, was I ever glad to see the GVWR sticker on the door at 6100lbs. I'm taking that $25,000 expense and taking way less heat from the Mrs. for buying "a gas guzzling SUV that only hauls 4 people and doesn't have a trailer hitch". But it hauls a$$ and I NEED it for work, honey.

I have one question for the CPA's on the forum: I have always heard that the fastest way to trigger an IRS audit is to claim a home office. Is there any truth to that or is it an old wives' tale?

I have one question for the CPA's on the forum: I have always heard that the fastest way to trigger an IRS audit is to claim a home office. Is there any truth to that or is it an old wives' tale?
If you do it right, it's not a concern. There are several hurdles that have to be reached, including the fact that the office room has to be used solely as an office. It can't be an area of the house that people routinely walk through or is used for more than one purpose.

Don't use too high of a business percentage. Anything over 10% is iffy.

Good luck.

I own a small business and my jeep is my Third Write off-- you are suppose to track miles- personal vs Business ---but you can Track only one month and average that to 12 months for that percentage--- I also believe that IF !!!!! you are going to try to take this 25K deduction you really NEED to be over 50% for business --- I claim 90% business and 10% personal --- so You really only get the 90% of that deduction --- but at last you can depreciate this over 5 years -- Landrover website has a great explaination of this and is why I bought that crazy $$$ car-- my mercedes GL350 will roughly save my tons of money as welll-- You need to do before the end of the year to start for this year I bought my Jeep 9/30/07 to write 2 quarters this year

When I looked before, the Grand Cherokee was the smallest SUV that qualified. I was able to deduct $27.5k for my '05 Limited in 2006. This year, I traded it in and took $17k on the trade, and bought the SRT for $37k. Accountant advised that if I trade it I can take the difference ($20k) as a write off this year (as it still qualifiys for Sec. 179), but I won't have a write off in 2008 (might need to buy another!) - by the way, the deduction is above the line (Self Employment Tax as a direct business expense - this helps a lot. Real "cost" ends up being approx. half of what you "paid" for the vehicle). I have a Real Estate business and use the vehicle 100% - hence the ~25,000 miles a year.

The Jeep Website also lists the GvWR as 6,100 lbs - I'd go by that and the sticker on the inside of the door.