section 179 limit raised to 100,000 deduction
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You guys arguing with Lexus may be interested to know that the new limit is 100K. I guess it goes into effect for year '03 taxes. Something to consider when talking to the beancounters.
I'm keeping my fingers crossed for '04 GVWR changes.
I'm keeping my fingers crossed for '04 GVWR changes.
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I took notice of that too, but as long as you "itemize" your business trips, you could possibly write the whole thing off, however I plan on writing off about 80% since that's how much I'll actually use. Then the smart thing to do when the following year rolls by is to then deduct the deprecation, thus the entire cost of the vehicle (in this case, either the LX470 or the GX470).
As a business owner, it's hard to argue with them; I really don't want an SUV, I probably could make a use for it as I expand into new areas, but a capable car would just as well too! Regardless, I know it'll be hard to bite the bullet on this transition from a car (Chrysler 300M) to a GX. But hey, look at what you get:
ML sound system, Navigation, Lexus treatment, and a decent performing vehicle (0-60 mph in 8.5 sec).
So, I'll wait later until the 2004s come out then I'll take it fully equipped and keep it for about 7-8 years! I would like something with a more roomier third-row seat (Expedition, Navigator, etc), but as you all know, the reliability question comes into play and I don't want to be at the dealer every week fixing problems! Most people should under 6 ft. should be alright back there anyways for a 4-7 hr. trip. I travel to Destin, Florida a lot so comfort plays a major role in this decision.
My friends Pontiac Grand Prix's driver side window won't work now and this is the third time it's going to be worked on. Completely unacceptable to plunk down that much money and get those kinds of results; American car quality just isn't up to par--They're getting closer but just not where Lexus is at. It's a shame too since there are so many good American offerrings out there.
The money left over will no doubt be enough for a second car, maybe a CTS or a 5er; I've already got the Lexus, I won't need two!
As a business owner, it's hard to argue with them; I really don't want an SUV, I probably could make a use for it as I expand into new areas, but a capable car would just as well too! Regardless, I know it'll be hard to bite the bullet on this transition from a car (Chrysler 300M) to a GX. But hey, look at what you get:
ML sound system, Navigation, Lexus treatment, and a decent performing vehicle (0-60 mph in 8.5 sec).
So, I'll wait later until the 2004s come out then I'll take it fully equipped and keep it for about 7-8 years! I would like something with a more roomier third-row seat (Expedition, Navigator, etc), but as you all know, the reliability question comes into play and I don't want to be at the dealer every week fixing problems! Most people should under 6 ft. should be alright back there anyways for a 4-7 hr. trip. I travel to Destin, Florida a lot so comfort plays a major role in this decision.
My friends Pontiac Grand Prix's driver side window won't work now and this is the third time it's going to be worked on. Completely unacceptable to plunk down that much money and get those kinds of results; American car quality just isn't up to par--They're getting closer but just not where Lexus is at. It's a shame too since there are so many good American offerrings out there.
The money left over will no doubt be enough for a second car, maybe a CTS or a 5er; I've already got the Lexus, I won't need two!
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I do indeed think the GX470 is eliglible for the discount, since its GVWR (the actual weight of the vehicle plus what it can carry) is about 6,000 lbs. but barely. Check out CarPoint and the like and they'll have a listing of the vehicles you can use for businesses.
I failed to mention that the first time. Also, the Range Rover is nice, but lacks a third row seat and the LX is bound for a redesign in '05, and also not as nimble to drive as the GX.
Now, I would get the Range Rover (since I hardly ever use the third seat anyways) if the deduction included pre-paid car leases/normal leases, but I have a feeling not -- Mileliage is also a big problem when dealing in that area, plus I want to be able to afford other equipment to write off and not just one vehicle. That would be silly!
I failed to mention that the first time. Also, the Range Rover is nice, but lacks a third row seat and the LX is bound for a redesign in '05, and also not as nimble to drive as the GX.
Now, I would get the Range Rover (since I hardly ever use the third seat anyways) if the deduction included pre-paid car leases/normal leases, but I have a feeling not -- Mileliage is also a big problem when dealing in that area, plus I want to be able to afford other equipment to write off and not just one vehicle. That would be silly!
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I may be missing something here, as I am not a CPA. Isn't it more adventageous to lease thru your corp and write off the lease payments, then to buy and write off the business use portion. I know that every business is different, but since i only use my vehicle for 30% business, it seems I'd do better on the lease. maybe I'm not understanding, but does the 179 rule allow me to buy thru my corp and write off the whole purchase price? that would be great, but it just seems a little to good.
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2 points I was trying to make
1-the GX470 does NOT qualify for the 179 tax credit because of the GVWR recall. This change in the section 179 allowance may affect your ultimate agreement with Lexus. (for those of you affected by the weight change)
2-I will write off ~90% business use on my vehicle (vs. your 30%) Since the GX470 had the recall, I bought a Yukon this year. With a sticker price of 40K, I can write off 90% of 40k this year (36K for those of you who are mathematically challenged). That translates into a much larger savings than just writing off the lease/purchase payments. I had a corvette and was able to write off a whopping 3500/year! It would have taken me 12 years to write off the car.
Also, I believe (but not positive) you have to use your car >50% business to qualify for section 179.
1-the GX470 does NOT qualify for the 179 tax credit because of the GVWR recall. This change in the section 179 allowance may affect your ultimate agreement with Lexus. (for those of you affected by the weight change)
2-I will write off ~90% business use on my vehicle (vs. your 30%) Since the GX470 had the recall, I bought a Yukon this year. With a sticker price of 40K, I can write off 90% of 40k this year (36K for those of you who are mathematically challenged). That translates into a much larger savings than just writing off the lease/purchase payments. I had a corvette and was able to write off a whopping 3500/year! It would have taken me 12 years to write off the car.
Also, I believe (but not positive) you have to use your car >50% business to qualify for section 179.
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utilso26, the GX470 does not qualify. The wording for the IRS is GVWR greater than 6000. Unfortunately, the GX470 is 6000 exactly. Those other websites may list the GX as eligible, but it's the IRS that has the final say. The other sites may not be aware of the change in weight.
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rbridges, I see; well, that's a bummer!
I certainly wouldn't want to buy a Navigator or Escalade with all the negative energy surrounding those vehicles and anything over $50k just doesn't sound good!
I couldn't justify spending $45k on a Ford Expedition either! The interior is nasty.
Looks like my only alternatives seem to be one of the following options:
1. Get a Mazda6s for personal use and then a 2004 F-150 fully equipped.
2. Just get the GMC Yukon XL Denali then maybe a car later on.
Decisions, decisions! Maybe someone has a better plan. I just can't fanthom the idea of plunking down more than $60k for an LX that hasn't been structurally redesigned since 1998 basically! And the QX55 that's right around the corner comes too late (after Jan. 1, 2004) to be eligible for a tax deduction for 2003 returns (at least, that's always been my understanding). The Nav isn't bad, but like I said before, I'd be PO'ed if the reliability equation didn't pan out so well...it's hit or miss with these American cars, but they're so dang good with the feature content.
update: rbridges: You're right about the greater than 50% to qualify as a business use vehicle. Right on the money with that one.
I certainly wouldn't want to buy a Navigator or Escalade with all the negative energy surrounding those vehicles and anything over $50k just doesn't sound good!
I couldn't justify spending $45k on a Ford Expedition either! The interior is nasty.
Looks like my only alternatives seem to be one of the following options:
1. Get a Mazda6s for personal use and then a 2004 F-150 fully equipped.
2. Just get the GMC Yukon XL Denali then maybe a car later on.
Decisions, decisions! Maybe someone has a better plan. I just can't fanthom the idea of plunking down more than $60k for an LX that hasn't been structurally redesigned since 1998 basically! And the QX55 that's right around the corner comes too late (after Jan. 1, 2004) to be eligible for a tax deduction for 2003 returns (at least, that's always been my understanding). The Nav isn't bad, but like I said before, I'd be PO'ed if the reliability equation didn't pan out so well...it's hit or miss with these American cars, but they're so dang good with the feature content.
update: rbridges: You're right about the greater than 50% to qualify as a business use vehicle. Right on the money with that one.
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Last edited by utilso26; 06-03-03 at 07:21 PM.
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Thanks for the help. In reality, it seems to be somewhat limited use, yet I see the 179 topic all over this board, so I imagine some people are fudging their numbers. Imagine that.
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