Re: Road & Track review on T6 (Sparky)
Here is some info I posted on another site about the section 179 deduction:<p>If you own your own business, and purchase a vehicle for use with your business, it can qualify for a section 179 deduction.<p>According to IRS regulations, a passenger vehicle is considered a "truck" for tax purposes when it has a gross vehicle weight rating (the manufacturer's maximum weight rating when loaded) over 6,000 pounds. Truck status means very favorable depreciation rules when the vehicle is used over 50% for business. Some popular SUVs pass the truck test; the Chevrolet Suburban and Ford Excursion are the beefiest examples. The Volvo XC90 meets the 6000 pound limit if you include the versatility package for either the 2.5T or the T6 (GVWR for 2.5T with 7 seats = 6005 lbs. GVWR for T6 with 7 seats = 6080 lbs.). Both the 2.5T and T6 with only 5 seats are under 6000 lbs., and would not qualify.<p>Here is an example of the tax advantages. Say you buy a new $35,000 Suburban this year to be used 100% in your sole proprietorship business. As long as you put that hunk of metal to work before Dec. 31, 2002, you can bag a whopping $24,000 section 179 deduction (assuming no other equipment additions for this year). Next, you can claim an additional $4,800 under the first-year 30% bonus depreciation break [($40,000 - $24,000) x 30% = $4,800]. Finally, you can deduct the remaining $11,200 of cost over six years under "standard" depreciation guidelines ($40,000 - $24,000 - $4,800 = $11,200). In most cases, this means a 20% first-year write-off, based on remaining cost, which adds another $2,240 worth of depreciation (20% x $11,200 = $2,240). So your total first-year write-off for that new Suburban is $31,040, which amounts to an amazing 78% of its purchase price ($24,000 + $4,800 + $2,240 = $31,040). That sure beats the wimpy $3,060 first-year write-off for a "regular" car costing the same amount. Another plus: Heavy SUVs, pickups and vans also escape the 3% luxury tax on passenger vehicles priced over $40,000. <p><br><BR><BR>
[Modified by ernest-t, 8:54 PM 12-13-2002]