Tax Guru – Ker$tetter Letter

Q:

Subject: please help

can you give me he formula on how to figure the 179 tax deduction of a 6,000 lb suv

let’s say that I purchase this year (2007) a new H2 for $70,000 dollars

can you walk me thru the total deduction?

any help would be great – thank you

A:

The amount of your Section 179 deduction will depend on the business usage of the vehicle based on miles driven, as well as your qualifying earned income.  This kind of calculation is not something that can or should be done on your own. 

If you seriously need to know the tax benefits before you buy your new H2, you should have your personal professional tax advisor crunch the numbers for you.

If you don’t have a personal professional tax advisor, you need to get one ASAP.  Any business making enough money to afford a vehicles as expensive as that H2 is in serious trouble if you are trying to handle all of the tax and financial matters on your own.

Good luck.

Kerry Kerstetter