Thread: Why
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Old December 30th 09, 02:02 PM posted to rec.autos.4x4
PeterD
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Posts: 874
Default Why

On Tue, 29 Dec 2009 17:53:03 -0800, "Paul Hovnanian P.E."
> wrote:

>Thank the IRS.
>
>Years ago, they decided to punish anyone who used cars and station wagons
>for business purposes. But the rules for expenses associated with 'trucks'
>were much more reasonable. So people switched to trucks.
>
>When Congress increased the definition of a 'truck' for the purpose of
>expense allowances from 6000 GVW to 8000 GVW, we saw the advent of Hummers,
>Excursions, and even larger vehicles.
>
>As long as the tax laws are going to punish businesses who use small cars,
>we're going to be stuck with big trucks.


I think you have over simplified the situation some. What the IRS was
attempting to do was prevent a non-business from expensing the family
car. A formally organized business has less problems in this
situation, and there are methods to do what you want (have a smaller
car for your business...) I'd strongly recommend you contact your CPA,
or tax consultant and they will be glad to find a solution to your
problem.

As far as "Stuck with big trucks" that bit makes no sense. No business
drives a big truck unless they have to. The operating costs far exceed
any (perhaps non-existant) tax benefits. I know, we use big trucks
(over 8K GVW) and would gladly use smaller ones but it is not
feasible--ever loaded a couple of thousand pounds of stock in a Prius?
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