If you are considering purchasing a new SUV (whose weight exceeds 6,000 lbs) for the tax year 2008 and the vehicle will be used 100{eb914d8c00d6b744d02a9a8064b0bfd5c559be7136358887c29ad495da2b8d17} in business, than the IRS offers incredible tax breaks up until December 31, 2008.
For example if you are going to buy a new SUV for $45,000 before the current 2008 year end, and the SUV meets the IRS statutory weight requirement of >6,000 lbs, then you can get a tax write-offs of upto $37,000.
Here is the math to help you understand this deduction-
1. You are entitled to write-off $25,000 of the initial cost in the first year.
2. An amount equal to 50{eb914d8c00d6b744d02a9a8064b0bfd5c559be7136358887c29ad495da2b8d17} of the balance of the cost $20,000 can be claimed as an additional BONUS depreciation, which adds to an additional $10,000
3. The remaining balance of the cost which is $10,000 can be depreciated over 5 years which may result in an additional $2,000 as regular depreciation.
Thus, in the tax year 2008 the taxpayer can actually get a deduction of $37,000 for purchasing a SUV at $45,000.
Considering that you are in high tax bracket, buying a SUV could give you a considerable tax break.
So, Act now…before the time runs out!