tax write off

rjk · 06-03-2003, 06:53 PM

Spoke with my accountant today who updated me on the new tax laws. Businesses will be able to write off 100% of a cayenne turbo potentially. In real dollars this amounts to getting about half of the cost of the car back next year on returns. I know alot of threads talk about the cayenne turbo not being worth close to 100 grand but this sure makes it a lot more appealing. Has anyone else given the tax write off piece any thoughts and when people say they would rather have an acura, etc. it may change their mind when they realize the dollars may not be that far off between the two as the acura mdx for example doesn't weigh enough to fit the criteria. any thoughts? RJK

ronin · 10:38 PM

Just curious what tax rules would make the Cayenne eligible for that size of a write off. I gave the turbo a good once over at the dealership about two weeks ago and I must say that I really liked it and am considering it as a family transport.

cegerer · cegerer's Garage

I was talking to my accountant about this today. From what I understand, the current 'accelerated depreciation' schedule allows $50,000 to be deducted over 2 years for a potential tax savings of $12,500 per year if you're in the 50% tax bracket. This is for vehicles with a GVR of +6000 pounds. I heard they may raise the amount to $70,000 or more. The down side is you must trade the vehicle in to a dealer when you're ready to change vehciles or you will be sitting on a $50,000 asset with nothing left to depreciate. -- Curt

mr.bch · 07-20-2003, 04:22 PM

I have heard (on NPR) that this has been debated as possibly being changed very soon. It was originally wrote as a way to help farmers subsidize their large trucks, but now is more so a very large loop hole that has nothing to do with farming.