Coulter Motor Company

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 Attention SUV owners, you may qualify for a significant tax break on vehicles used in trade or business.  Vehicles placed in service between September 8, 2010 and January 1, 2012, you may be able to write off 100% of your purchase in the tax year that the vehicle was placed in service.  This is a dramatically higher deduction level than the amounts taxpayers could expense under the pre-2010 Tax Relief Act law.

Although generous tax breaks for gas consuming heavy SUV’s have in the past raised the ire of Congress, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 actually made tax breaks for these assets even more generous.  Although it may be an unintended result, the limited time 100% bonus depreciation allowance for qualified property under Code Section 168(k) allows taxpayers that buy a new heavy (6,000 pounds or more) SUV and use it entirely for business to write off the entire purchase price in the placed-in service year.

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 September 8, 2010 and before January 1, 2012.  Qualified property includes property to which MACRS (Modified Accelerated Cost Recovery System) applies with a recovery period of 20 years of less.  Autos and trucks are five year MACRS property, and thus qualify for bonus depreciation (assuming business use exceeds 50% of total use).

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.  There is no specific rule barring this result for heavy SUV’s.  Thus, if a taxpayer buys a heavy SUV, in say February of 2011, the full cost of the vehicle may be written off on the 2011 return.

Coulter Tempe is the home to Cadillac, Buick and GMC Trucks – many of which qualify for this tax relief.  Take a look at all our inventory or stop by and see us a I-10 and Elliot in the Tempe Autoplex.

Coulter Tempe…Where Getting the Best Deal is…EASY!


February 9, 2011 - Posted by | Buick, Cadillac, Coulter Tempe, GMC Trucks | , , , , , , , , , ,

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