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Can you break down the rule 179 law for me? I have yet to use this deduction which is stupid but I am planning on utilizing it now.
OK. Here are a few basics.
I am small biz owner. Bought a business last month.
We bought a new SUV (>6000 lbs) last december 2005 for 50k that the wife drives(because of the need with the kids.)
We have a 6 year old sedan (paid for) that I use for business at close to 95% of the time.
We are looking to get rid of the sedan and get a new auto soon.
Here are the basic questions.
Question #1:
Would the better tax benefit lie with me driving the SUV for work purposes at a near 75% clip and have her drive the sedan? (which isnt as friendly for the kids and not really what she wants but....). And what would the actual breakdown look like with this option?
Question #2
Is timing a factor with this? meaning, now that it is the 4th quarter, does it change the percentages? would it be better to put my SUV "into play" on Jan 1st
Question #3
Is the myth correct about it is better to purchase if greater than 6000lbs and t lease if it is under 6000 GVW because of the limitations on rule 179?
Any feedback is appreciated. My current accountant is on an Elk Hunt in Wyoming for another week and I am getting anxious to get answers.
OK. Here are a few basics.
I am small biz owner. Bought a business last month.
We bought a new SUV (>6000 lbs) last december 2005 for 50k that the wife drives(because of the need with the kids.)
We have a 6 year old sedan (paid for) that I use for business at close to 95% of the time.
We are looking to get rid of the sedan and get a new auto soon.
Here are the basic questions.
Question #1:
Would the better tax benefit lie with me driving the SUV for work purposes at a near 75% clip and have her drive the sedan? (which isnt as friendly for the kids and not really what she wants but....). And what would the actual breakdown look like with this option?
Question #2
Is timing a factor with this? meaning, now that it is the 4th quarter, does it change the percentages? would it be better to put my SUV "into play" on Jan 1st
Question #3
Is the myth correct about it is better to purchase if greater than 6000lbs and t lease if it is under 6000 GVW because of the limitations on rule 179?
Any feedback is appreciated. My current accountant is on an Elk Hunt in Wyoming for another week and I am getting anxious to get answers.