100% Bonus Depreciation for Heavy SUVs

I am currently in the market for a new business vehicle.  I was thinking about down sizing from my Ford Pick Up.  You know the type, the one with the six foot bed that is eligible for expensing under Section 179.  However, I may need to rethink my purchase decision. Under the 2010 Tax Relief Act a “heavy SUV” used entirely for business is eligible for a 100% write off under the new bonus depreciation rules.

A “Heavy SUV” is a vehicle with  GVW (gross weight) rating of more than 6,000 pounds. These vehicles are exempt from the “luxury auto” limits. If the SUV is under 14,000 pounds (GVW or gross weight) then Section 179 expensing is limited to $25,000.  However, if the the vehicle is a new vehicle it is eligible for 100% bonus depreciation and can be written off in the year of purchase (if before the end of 2011).  Remember this applies to purchases between September 8, 2010 and December 31, 2011. I guess I am going to look at brand new SUVs.

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