Q:

Dear Kerry:

Our corporation can purchase the 2006 Denali Pickup with the crew cab and short bed for $39,784.  No trade-in or down payment is involved.  The GVW is 7,000 lbs.

Please let me know as soon as possible if this vehicle would qualify for the full deduction or do we need something bigger?

A:

You’re not going to believe this one.  I checked the specs for that Denali on the GMC website and they show the short bed as being 69.2 inches long. The rules for deducting more than $25,000 for a vehicle specify that it:

“is equipped with a cargo area of at least 6 feet in interior length which is an open area or is designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment”

Since six feet is 72 inches, the short bed is 2.8 inches too short to qualify for more than a $25,000 Section 179 deduction.

While the Standard Box is specified as being 78.7 inches long and the Long Box as 92.6 inches, neither seems to be available with the crew cab. 

I hope this helps you decide what vehicle to purchase. Remember that even if you can only claim $25,000 under Section 179, the remaining cost can be depreciated over the five year life of the vehicle.

Kerry