e-YWM Alert #15 - 100% Writeoff for Heavy SUVs Used Entirely for Business

Although generous tax breaks for gas-consuming heavy SUVs have in the past raised the ire of Congress, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (2010 Tax Relief Act) actually made tax breaks for these assets even more generous. Taxpayers that buy a new heavy SUV after September 8, 2010 and before 2012 and use it entirely for business can write off the entire purchase price in the placed-in-service year. For the purposes of these laws a heavy SUV is defined as a vehicle with an unloaded vehicle weight of 6,000 pounds or more. A partial list of the vehicles that would qualify as a heavy SUV can be found herehttp://www.alphaleasing.com. Now 100% first-year writeoffs for heavy SUVs. Under the 2010 Tax Relief Act, the bonus first-year depreciation percentage is 100% (instead of 50%) for bonus-depreciation-eligible "qualified property" that is generally: (1) placed in service after Sept. 8, 2010 and before Jan. 1, 2012, and (2) acquired by the taxpayer after Sept. 8, 2010 and before Jan. 1, 2012. Thus, a taxpayer that buys and places in service a new heavy SUV after Sept. 8, 2010 and before Jan. 1, 2012, and uses it 100% for business, may write off its entire cost in the placed-in-service year. Do you use your vehicle 100% for business? You need to watch commuting and other personal use. Please contact us before using this tax strategy to make sure your qualify.

All information presented above is generic, if you would like to know how this may be applied to your specific situation please give us a call at 303-792-3020 or reply directly to this email. Additional resources are always available at our website, www.ywmcpa.com.