I just bought a new SUV, and I'm quite happy with my purchase.
I got a 2008 GMC Yukon Hybrid, and for a better price that I expected (compared to a Yukon Denali, which is what I went to go buy).
Getting the dealer to lower the price is another story.
The good news is that this truck can do almost 20 miles per gallon in the city, and about 22 on the freeway, which is decent for a full sized SUV. But that's not the main reason I got it. Because this vehicle weighs over 6,000 pounds and I intend on using it more than 50% in my business, I qualify for a $25,000 tax write-off.
Many people know of this as the "Hummer Tax Loophole," which is a qualifying Section 179 deduction for heavy business use vehicles (the tax break originally intended to assist farmers with heavy machinery like tractors). It gets reported on Form 4562 of the IRS tax return, which is the same form that will be used to depreciate the vehicle over the next 5 years.
I don't think it's very nice that this tax loophole is still open for rich folks to buy Hummers as they please, but I wasn't going to sit around and let this tax break pass me up.
By purchasing this vehicle, I get a $25,000 deduction. At my tax bracket, that's about $7,500 in additional taxes that I would owe.
The great news is that the tax deduction pretty much takes $7,500 right off the sticker price of my truck.
And we all know what we could do with an extra $7,500 right?
That's right, BUY CHEESE!!!
I meant Real Estate, although it is hard to pass up some good Gouda...
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