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RIA OBSERVATION: Heavy SUVs over 6000 lbs - Those that are built on a truck chassis and are rated at more than 6,000 pounds gross (loaded) vehicle weight - are exempt from the luxury - auto dollar caps because they fall outside of the Code Sec. 280 F (d) (S) definition of a passenger auto. Under Code Sec. 179 (b) (6), not more than $25,000 of the cost of a heavy SUV may be expensed under Code Sec, 179. The balance of the heavy SUV's cost may be depreciated under the regular rules that apply to 5-year MACRS property (e.g., a 20% first-year depreciation allowance if the half-year convention applies for the placed in service year). However, with the 50% first year bonus depreciation available for qualified assets bought and placed in service in 2010 (in addition to the $25,000 expensing allowance and regular depreciation), taxpayer buying and placing in service new heavy SUVs in 2010 may be entitled to write off most of the cost of the vehicle.
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