Thursday, August 11, 2005

Arctic Oil

Republican irresponsible energy policy get's my goat- the SUV tax goodie being my favorite

From my own tax newsletter last fall

The SUV Tax Loophole – Tightened – not closed -You can still get a good deduction here!The 2003 Tax Act created the “SUV loophole” that allowed business taxpayers to expense (up to $100,000) the cost of a business vehicle weighing more than 6,000 pounds. Tax Act 2 closes the loophole by requiring a vehicle weight of more than 14,000 pounds to qualify for the maximum expensing opportunity. The new rules reduce to $25,000 the expensing available to qualifying vehicles weighing over 6,000 pounds (traditional SUVs). The effective date for the change is for purchases made after October 22, 2004 – the day President Bush signed the 2004 Tax Act 2 into law. If you have a profitable business and have been contemplating purchasing a new vehicle be sure to contact this office ASAP to review your choices. The 2003 Tax Act added a special 50% bonus depreciation (but it expires on December 31, 2004) which when combined with the new 2004 $25,000 expensing limits might make the decision to buy this year more attractive than a delayed purchase in 2005. At last count there are over 40 vehicles that qualify. Call us for a list!

That's right - my tax letter - please don't shoot the messenger!

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