Quote:
Originally posted by dragonhawk
A) Used
B) October 2003
C) About 3994 (I have to look, but this is from the Jeep website)
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Sorry, you're going to be limited to around $3,360 of depreciation.
New autos get more based on the new tax laws, especially ones purchased after 5/6/03.
Also, if it weighs more than 6,000 lbs, you'd get a lot more, which is why Hummers and Excursion, suburbans, etc. are so popular with small business owners.
This assumes that you paid more than $16,800 for it, and it is classified as a "luxury auto." If you paid less, you can depreciate the cost of the asset times 20% (first year MACRS depreciation % for a five year asset, half year convention) and also may chose to 179 it if possible.
You can only use 179 if you're going to have positive taxable income for the year as well.