Tax Guru – Ker$tetter Letter

Q:

Subject: re 2002 2003 sec 179 

Kerry:

in the tristate area for 2002 and 2003, there was a ruling to spur capital investment and businesses could purchase a vehicle and depending on the cost could take $25K + 10% dep + that year’s depreciation.   Can you enlighten me on the nuances of this rule and how to best apply it?

Thanx

A:

This doesn’t ring a bell with me.  I checked in my 2003 references and didn’t see it mentioned.

Are you perhaps confusing that with the special depreciation deductions allowed for New York Liberty Zone property?  This is for almost all kinds of business equipment, not just vehicles and is only for the specific part of Manhattan, not the full Tri-States, and covers assets acquired and placed into  service from 9/11/01 through 12/31/06.

If it’s a State tax break you are referring to, you should check with your state tax agency for more specifics.

I’m sorry I couldn’t be more help.  Good luck.

Kerry Kerstetter