RoadBikeReview.com's Forum Archives - General


Archive Home >> General(1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 )


Gov Subsidy(3 posts)

Gov Subsidybiketillyapuke
Oct 15, 2003 5:47 PM
I was just reading in the New York Times that a tax loophole permits SUV owners to deduct up to 100% of the cost of their vehicles if it qualifies for "work." I was thinking, what if they took all that money away from SUVs and susidized our bikes instead. Here we all are, killing ourselves to get up hills. We are going to live longer and healthier and wind up paying for the healthcare of the fat slob in the SUV.
Are you with me?
re: Gov SubsidyPdxMark
Oct 15, 2003 6:29 PM
It was intended as a deduction for heavy vehicles (trucks, vans) used in small businesses for things like transporting or delivering goods, farm products, etc. Big nasty SUVs & pick-ups slip in by meeting the minimum weight limit for these heavy vehicles.

If there were any justice in Washington DC (a feeble hope with Ashcroft there), every tax return with those deductions taken on an SUV would be audited - with proof required that the vehicle is used exclusively for business purposes. Some small business owners might be using mega-big SUVs exclusively for work, but I bet most of them are snagging another family car with a 30% discount (the effect of the tax deduction).

Here's a summary:

"The IRS normally limits the depreciation that can be deducted on the purchase price of a business vehicle. And, that limit is pretty small - only $3,060 for the first year for a 100% business use vehicle. However, for some business "trucks" the first year depreciation can be as high as $24,000. A "truck" is defined by IRS as a vehicle with over 6,000 lbs. of gross weight. This gross weight of the vehicle is displayed on the inside of the driver's door."

If you have tax fraud in mind, here's a list of vehicles that qualify:
Cadillac
Escalade SUV

Chevrolet
Astro Passenger Van AWD
Avalanche Pickup
Express Van
Silverado Pickup
Suburban SUV
Tahoe SUV

Dodge
Durango SUV
Ram Van
Ram Maxi Van
Ram Wagon
Ram 1500 Pickup
Ram 2500 Pickup
Ram 3500 Pickup

Ford
Excursion SUV
Expedition SUV
Econoline (E150, E250, E350) Van
Econoline Wagon
F150 Pickup
F250 Pickup
F350 Pickup GMC
Yukon -
(including XL and Denali) SUV
Safari Passenger Van AWD
Savana Van
Sierra Pickup
Sierra Denali

Land Rover
Discovery Series II SUV (2001)
Range Rover SUV (2001)

Lincoln
Blackwood Pickup
Navigator SUV

Mercedes
M-Class -
(ML 32, ML 500, ML55 AMG)

Toyota
Land Cruiser (4WD) SUV
Sequoia SUV
Tundra Pickup (Limited models)
Two Rants then I'll drop it.pitt83
Oct 16, 2003 3:52 AM
Also, a SUV is subject to the same registartion fee as a passenger car. Make an identical chassis and body a pick up truck, and now you pay based on commercial reg fees. Probably at least 5X the cost for a pick up vs SUV.

TEA21 was supposedly going to offer the same tax incentives for bike commuting. I think (not sure) that bill went to sunset without resolution. So much for the public good.