What is the SUV Deduction in 2007?
What is the amount of allowable SUV Deduction in 2007
The so-called "SUV deduction," allows a business owner to deduct up to $25,000 of the cost of a qualifying larger vehicle in the year of purchase.
What is a Qualifying Large Vehicle?
The qualifying larger vehicle may be an SUV, van or truck, however, it must have a gross weight rating in excess of 6,000 pounds and limited to 14,000 pounds (design weight fully loaded) in order to qualify for this write-off.
The SUV deduction can be claimed on the 2007 Tax return provided the vehicle has been purchased and placed into business service inspite of being placed as late as December 31st.
Just a word of caution, the IRS has warned taxpayers the qualifying vehicle placed in service must be built on a truck chassis and not a car chassis, otherwise the SUV deduction may be disallowed. Therefore, the taxpayer is urged to consult the Tax professional to ensure compliance with the IRS!