Has anyone else taken the 179 depriciation deduction on their rigs? My CPA has been bugging me for years to buy a vehicle with a gvwr over 6000 lbs so I could take this deduction. He buys a new truck every other December for the write off. I finally purchased my rig this last year. God bless America!
from Wikipedia (so you know it's legit
179 Depreciation Deduction
Up to $25,000 of the cost of vehicles rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight can be deducted using a section 179 deduction. This deduction was enacted decades ago to assist self-employed people in purchasing a vehicle for business use. The weight minimum was intended to limit it to commercial-type trucks. For many years, the deduction remained below the average cost of a new vehicle, since large trucks were relatively inexpensive. Since it is a reduction in taxable income, the after-tax value of this deduction averages 30% of the price of the vehicle in question.
The increasing popularity of large vehicles such as sport utility vehicles in the last decade, however, pushed their average price to nearly double the average passenger car cost. In response, the 2002 Tax Act increased this deduction to $75,000, and it rose again to $100,000 for the 2003 tax year. This was more than three times the current average cost of a passenger car in the United States, and covered a large number of luxury models.
Critics who felt that this deduction unfairly benefit buyers of heavy, and thus fuel-inefficient, vehicles. Indeed, the actual value of this deduction is far larger than the exemptions offered for alternative fuel vehicle purchasers. Further, some who have suggested creating a small business simply to exploit this "loophole". Proponents who contend that it benefits both small business owners and the United States automobile industry. Congress has since lowered the allowable deduction: as of October 22, 2004, only $25,000 may be deducted using section 179. In contrast, the maximum first year deduction for a passenger automobile is $10,610. Any excess cost may be deducted in future years.