Large Write Off Clause for Certain Vehicles

I talk to other business owners about section 179, and they give me a glossy stare. With it, you can write off 100% of a vehicle at once. It used to be abused (i.e., people go buy a Mercedes for personal use and then get the write off). There's a lot of bad data on the net, but here is what my CPA assures me is the most current list. This tax ramifications of this are huge. Bush passed this, as a way to stimulate the economy through small businesses, and no one would have the balls to take it away (we hope). I believe it applies to both new and used vehicles. In some cases, you may have to go a little bigger to get the write off (i.e., I pull small pieces of equipment, and will need to buy a Silverado when a Colorado would have sufficed).

You are welcome in advance.

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TRUCKS WITH GVWR OVER 6,000 POUNDS
Cadillac trucks in excess of 6,000 pounds
Escalade EXT (2002-2014) (beds under 6', see Table IV)
Chevrolet trucks in excess of 6,000 pounds
Avalanche (2002-2013) (beds under 6', see Table IV)
Silverado (2002-2014) (certain beds under 6', see Table IV)
SSR (2002-2006) (beds under 6', see Table IV) (discontinued in 2007)
Dodge trucks in excess of 6,000 pounds
Dakota (certain trims) (certain beds under 6', see Table IV)
2002-All quad cabs
2003-All quad cabs and all club cabs (4x2 and 4x4)
2004-All quad cabs and all 4x4 club cabs
2005-2008-All quad cabs and all club cabs
2009-2011-All trims (discontinued in 2012)
Ram (2002-2014) (certain crew cab beds under 6', see Table IV)
Ford trucks in excess of 6,000 pounds
F-150 (2002-2014) (certain beds under 6', see Table IV)
F-250 (2002-2014)
F-350 (2002-2014)
F-450 (2008-2014)
GMC trucks in excess of 6,000 pounds
Sierra 1500, 2500, 3500 (2002-2014) (certain Sierra 1500 beds under 6', see Table IV)
Honda trucks in excess of 6,000 pounds
Ridgeline (2006-2014) (bed under 6')
Hummer trucks in excess of 6,000 pounds
H2 SUT (2005-2010) (bed under 6')
H3T SUT (2009 - 2010) (bed under 6')
Lincoln trucks in excess of 6,000 pounds
Blackwood Pickup (2002)
Mark LT (2006-2008) (bed under 6', see Table IV) (discontinued)
Mitsubishi trucks in excess of 6,000 pounds
Raider (2006-2009) (discontinued) (certain beds under 6', see Table IV)
Nissan trucks in excess of 6,000 pounds
Titan (2004-2014) (certain beds under 6', see Table IV)
Toyota trucks in excess of 6,000 pounds
Tundra (certain trims over 6,000 GVWR)
2007 - 2014-All trims over 6,000 GVWR (certain beds under 6', see Table IV)
2005 and 2006-All trims over 6,000 GVWR except: (1) Base V-6 2 dr. 4x2 Regular Cab and (2) SR5 V-6 4 dr.
4x2 Access Cab
2004-All trims over 6,000 GVWR except (1) trims with Access Cab Stepside (however, some websites report a
GVWR of 6010), (2) Base 2dr 4x2 regular cab, (3) SR5 V-6 4dr 4x2 Access Cab (V-8 version qualifies), and (4)
SR5 V6 4dr 4x4 Access Cab* (GVW is exactly 6,000 pounds (V-8 version qualifies))
2003-All trims over 6,000 GVWR except (1) Base 2dr 4x2 Regular Cab, (2) SR5 V-6 4dr 4x2 Access Cab (V8
version qualifies), and (3) SR5 V6 4dr 4x4 Access Cab* (GVW is exactly 6,000 pounds (V-8 version qualifies))
2002-All trims over 6,000 GVWR except (1) Base 2dr 4x2 Regular Cab, (2) SR5 V-6 4dr 4x2 Access Cab (V-8
version qualifies), and (3) SR5 V-6 4dr 4x4 Access Cab* (GVW is exactly 6,000 lbs (V-8 version qualifies))
*A vehicle must have a GVWR in excess of 6,000 pounds to qualify for exemption from caps.
TABLE II
SUVs and CROSSOVERS WITH GVWR OVER 6,000 POUNDS
Audi suvs in excess of 6,000 pounds
Q7 (2007-2014)
BMW suvs in excess of 6,000 pounds
X5 (2002-2014)
X6 (2008-2014)
Buick suvs in excess of 6,000 pounds
Enclave (2008-2014)
Cadillac suvs in excess of 6,000 pounds
Escalade, Escalade ESV, Escalade Hybrid (2002-2014)
SRX (2004-2009) (2010 and later models no longer exceeds 6,000 pounds)
Chevrolet suvs in excess of 6,000 pounds
Suburban 1500, 2500 (2002-2014)
Tahoe (2002-2014)
TrailBlazer Ext (2002-2006)
TrailBlazer SS (2007-2009) (discontinued)
Traverse (2009-2014)
Chrysler suvs in excess of 6,000 pounds
Aspen, Aspen Hybrid (2007 - 2009) (discontinued)
Dodge suvs in excess of 6,000 pounds
Durango (2004-2009) (2011-2014)
Ford suvs in excess of 6,000 pounds
Excursion (2002-2005) (discontinued)
Expedition (2002-2014)
Explorer (2006-2014)
Explorer Sport Trac (2007-2010) (discontinued)
Flex AWD (2009 - 2014)
GMC suvs in excess of 6,000 pounds
Acadia (2007-2014)
Envoy XL (2002-2006)
Envoy XUV (2004, 2005) (discontinued)
Envoy Denali (2005-2009) (discontinued)
Yukon (2002-2014)
Honda suvs in excess of 6,000 pounds
Pilot 4x4 (2009 - 2014)
Hummer suvs in excess of 6,000 pounds
Hummer H1 (2003-2006) (discontinued)
Hummer H2 (2003-2010) (discontinued)
Hummer H3 (2008-2010 (6,001 lbs)) (discontinued) (2006-2007 models do not exceed 6,000 GVWR)
Infiniti suvs in excess of 6,000 pounds
QX56 (2005-2013) (discontinued)
QX80 (2014)
Isuzu suvs in excess of 6,000 pounds
Jeep suvs in excess of 6,000 pounds
Grand Cherokee (2011- 2014) (all trims)
Grand Cherokee (2009-2010) (all trims other than Limited and Laredo)
Grand Cherokee (2005-2008) (all trims other than Laredo)
Commander (2006-2010) (discontinued)
Kia suvs in excess of 6,000 pounds
Borrego (certain EX V6 and EX V8 trims exceed 6,000 lbs.) (2009) (discontinued)
Land Rover suvs in excess of 6,000 pounds
Discovery (2002-2004) (discontinued)
LR4 (2010-2014)
LR3 (2005-2009) (discontinued)
Range Rover (2002-2014)
Range Rover Sport (2006-2014)
Lexus suvs in excess of 6,000 pounds
GX460 (2010-2014)
GX470 (2004-2009) (discontinued)
(2003 GX470 does not qualify per manufacturer's recall)
LX470 (2002-2007)
LX570 (2008-2014)
Lincoln suvs in excess of 6,000 pounds
Aviator (2003-2005)
MKT (2013-2014) AWD only; (2010-2012) all models
Navigator (2002-2014)
Mazda suvs in excess of 6,000 pounds
CX-9 (certain trims)
Touring AWD (2007-2010)
Grand Touring AWD (2007-2010)
Sport AWD (2007-2010)
Mercedes-Benz suvs in excess of 6,000 pounds
G55 (2004-2005; 2007-2012) (discontinued)
G63 (2013-2014)
G500 (2002-2008)
G550 (2009-2014)
GL63 (2013-2014)
GL320 (2007-2010)
GL350 (2010-2014)
GL450 (2007-2014)
GL550 (2008-2014)
ML55 (2002-2003)
ML63 (2007-2013)
ML320 (2007-2009) (discontinued)
ML320 (2002-2003)
ML350 (2003-2014)
ML450 (2010-2011) (discontinued)
ML500 (2002-2007)
ML550 (2008-2013)
R63 (2007)
R320 (2007-2009)
R350 (2006-2013)
R500 (2006-2007)
Mercury suvs in excess of 6,000 pounds
Mountaineer (2006-2010) (discontinued)
Mitsubishi suvs in excess of 6,000 pounds
Montero (2003-2005) (2002 and 2006 models have GVWR less than 6,000)
Montero Sport does not qualify
Nissan suvs in excess of 6,000 pounds
Armada (2005-2014) (introduced in 2004 as the Pathfinder Armada; renamed in 2005 as Armada)
Pathfinder (2009-2012) (all 4x4 trims exceed 6,000 pounds)
Pathfinder (2008) (all 4x4, SE V8 4x2, and LE V8 4x2 trims exceed 6,000 pounds)
Pathfinder Armada (2004)
Porsche suvs in excess of 6,000 pounds
Cayenne (2003-2006; 2007 temporarily discontinued; 2008-2014)
Saab suvs in excess of 6,000 pounds
9-7x (2005-2009) (discontinued)
Saturn suvs in excess of 6,000 pounds
Outlook (2007-2009) (discontinued)
Toyota suvs in excess of 6,000 pounds
4Runner (certain trims)
2010-2014 all trims
2005-2009-SR5 Sport V8 4x4; SR5 V8 4x4; Limited V8 4x4
Land Cruiser (2002-2014)
Sequoia (2002-2014)
Volkswagen suvs in excess of 6,000 pounds
Touareg (2004-2014)
Volvo suvs in excess of 6,000 pounds
XC90 (certain trims)
2003-T6 A SR AWD
2004-2.5 TA AWD and T6 A AWD
2005-2009-all V8 trims and certain other trims
2010-2014-all trims
TABLE III
VANS GVWR OVER 6,000 POUNDS
Chevrolet vans in excess of 6,000 pounds
Astro (certain passenger trims listed below)
2002-LS all-wheel drive passenger van
2002, 2003, 2004, 2005-LT with 1SE all wheel drive passenger van
2003, 2004, 2005-Base all-wheel drive passenger van
2003, 2004, 2005-LS with 1SC all wheel drive passenger van
Express (2002-2014)
Express LT (2002)
Dodge vans in excess of 6,000 pounds
Ram Van (1500, 2500, 3500) (2002-2003)
Ram Wagon Van (1500, 2500, 3500) (2002)
Sprinter Van (2500, 3500) (2003-2009) (discontinued)
Ford vans in excess of 6,000 pounds
Econoline (E Series)
E-150 (2002-2014)
E-250 (2002-2014)
E-350 (2002-2014)
GMC vans in excess of 6,000 pounds
Safari (certain trims)
SLE AWD passenger van (2002)
SLT with 1SE AWD passenger van (2002)
Base AWD passenger van (2003-2005)
SLE with 1SC AWD passenger van (2003-2005)
SLT with 1SE AWD passenger van (2003-2005)
Savana (2002-2014)
Mercedes Benz vans in excess of 6,000 pounds
Sprinter (2010 - 2014)
Nissan vans in excess of 6,000 pounds
NV 1500, 2500, 3500 (2014)
Ram vans in excess of 6,000 pounds
Cargo Tradesman (2014)
Promaster (2014)
TABLE IV-Trucks Subject to $25,000 Expensing Limitation
TRUCKS GVWR OVER 6,000 With BED LENGTH UNDER 6 FEET
Cadillac trucks with short beds
Escalade EXT (2004-2014)
Chevrolet trucks with short bed
Avalanche (2004-2013)
SSR (2004-2006) (discontinued)
Silverado 1500 certain crew cabs (2014)
Silverado 1500 crew cabs (2010-2013)
Silverado 1500 certain crew cabs and certain extended cabs (2006-2009)
Silverado 1500 crew cabs (2004-2005)
Dodge trucks with short bed
Dakota Quad Cabs (2004-2008) (discontinued)
Dakota Crew Cabs (2009-2011) (discontinued)
Ram 1500 crew cabs (certain trims) (2010-2014)
Ram 1500 (certain trims) (2004-2009)
Ford trucks with short beds
Explorer Trac (2007-2010) (discontinued)
F-150 with 5.5 foot box* (2004-2014)
*F-150 trucks are available in 5.5, 6.5, or 8.5 foot box
GMC trucks with short beds
Sierra 1500 certain crew cabs (2014)
Sierra 1500 crew cabs (2004-2013)
Sierra Classic 1500 crew cabs (2007)
Sierra 1500 extended cabs with 5.75 foot box (2006-2009)
Sierra Classic 1500 extended cabs with 5.75 foot box (2007)
Sierra 1500 Denali certain crew cabs (2014)
Sierra 1500 Denali (2005-2013)
Honda trucks with short bed
Ridgeline (2006-2014)
Hummer trucks with short bed
H2 SUT (2005-2010) (discontinued)
H3T (2009-2010) (discontinued)
Lincoln trucks with short bed
Mark LT (2006-2008) (discontinued)
Mitsubishi trucks with short bed
Raider Double Cabs (2006-2009) (discontinued)
Nissan trucks with short bed
Titan Crew Cabs with short wheel base (SWB) (2008-2014)
Titan Crew Cabs (all trims) (2004-2007)
Toyota trucks with short bed
Tundra Crew Cabs (2007-2014)

OneofOne_sl said:

This sounds suspiciously like you're falling for the deduction myth. Don't waste money on shit you don't need.

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I'm thinking about replacing two vehicles. One of them is a one ton that I use to haul smaller pieces of equipment with. And I'm also considering buying a new mobile office. I was going to go Chevrolet Colorado and a Toyota Highlander, but if I pick Silverado/Jeep Grand Cherokee, that's a $50,000 difference in the write offs for that year. I can go smaller on the hauler, because my industry has moved to making equipment lighter over the years.

I know businesspeople that replace vehicles and don't even talk to their CPA beforehand, and they should. I know you've said you are a CPA, but if I'm looking at two vehicles that are comparable, shouldn't I take the one that gives me a 25k write off right now? Its a no-brainer. The Toyota Highlander and the Jeep Grand Cherokee both have roughly the same MSRP, but one gives me a much better tax advantage. I've thought about a Tahoe or Yukon, but given that I'm at customer homes all day, they might look at me funny. Mid sized and not super fancy is the name of the game when you are running customer estimates. Just last week, some guy made a smart ass comment about a Toyota Corolla that we use for estimates. They like to think we are the help.

I'm going to need to replace the vehicles soon, just because they are getting long in the tooth.

Big Phoenix_sl said:

lol government.

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There's nothing the wrong with this clause. You had so much stimulus targeted at big business, when it's small business that is the true engine of our economy. I'm pretty sure when it first came out, it was abused pretty badly though. Guys would go out at the end of the year, buy a luxury vehicle for personal use and then write it off. Now, if you look at that list, it seems pretty arbitrary.

Big Phoenix_sl said:

Oh please. Im sure farmers say they are the engine of America too when you bring up their retarded subsidies. Or the defense industry with the retarded amount of pork that gets thrown at it.

Click to expand...

Small Business Trends | The U.S. Small Business Administration | SBA.gov

SBA_sl said:

Small businesses provide 55% of all jobs and 66% of all net new jobs since the 1970s.

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66% of new jobs in the last four decades came from small businesses, not big corporate entities. You couldn't be more wrong.

Deathwing_sl said:

Are those jobs normalized by overall value(pay, benefits, etc)? Probably should throw out outliers like CEOs and such since they are relatively rare and paid well out of proportion.

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You can google that, I'm with customers all day.

Deathwing_sl said:

I didn't poke holes in his argument, I poked holes in the data he's using to support his argument. It's not my responsibility to find better data for him if the data he presented is misleading or not accurate enough to be conclusive.

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If you want to start a crusade against small business, feel free to email the SBA and log a complaint. Perhaps you can talk to them on the methodologies they used to compile those numbers. What a boring argument.