Tax Article - Luxury Auto Depreciation - SUVUnder current law, a large sport utility vehicle (SUV) over 6,000 pounds is not subject to the luxury car expense limitation. As a result, the entire cost of a large SUV (up to $100,000) placed in service during 2003 may be claimed as an expense (code section 179). The vehicle use must satisfy the normal requirements for deductibility. A Senate Finance Committee proposal includes a provision to reduce the limit for large SUV's to $25,000 and increase the weight limit to 14,000 pounds. Because any such change would most likely only apply to vehicles placed in service after the date of enactment of such a provision, clients considering such an equipment purchase may wish to accelerate the purchase into 2003 to secure the higher write-off. The write off can be used only to the extent that you have a profit. 2004 Model Vehicles with Gross Vehicle Weight Ratings (GVWRs) of More Than 6,000 Pounds:
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