| DISCLAIMER: Everything contained here is
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| | used more than 50% of the time for
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| information gathered by me through
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| | business purposes. Heres a little more
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| various news sources and IRS
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| | background so youll understand how the
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| publications. Be sure to consult your CPA
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| | Section 179 break works. Ill walk you
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| or Tax Attorney before purchasing a
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| | through steps to complete this process
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| vehicle to make sure you qualify.
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| | and hopefully reduce your tax liability
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| Background: In the mid 1940s, Congress
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| | for THIS YEAR.STEP ONE is to find a
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| passed a law that would allow for tax
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| | vehicle that qualifies for the deduction.
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| deductions to farmers after World War II
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| | Again, it has to have a gross vehicle
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| that would allow them to write off the
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| | weight rating of over 6000 pounds. At the
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| cost of new equipment to encourage more
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| | end of this article, I will give you a
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| people to work the land. Although many
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| | list of new vehicles that is current AND
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| people took advantage of the law, it sat
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| | that for sure qualify based on the
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| on the books for years without any
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| | weight. You can also usually look on the
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| changes to speak of. However, in 1996 the
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| | drivers door of any car, and there will
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| amount of money allowable to be written
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| | be a sticker with pertinent information
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| off started to grow for the sole purpose
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| | on it. GVWR is what you are looking
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| of encouraging business. Besides farm
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| | for.Next, be SURE to PURCHASE the
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| equipment, other things were added to the
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| | vehicle. Leases do not qualify. However
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| list such as vehicles. To keep to the
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| | if you DO lease there are certain
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| original spirit of the law, vehicles that
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| | deductions you can take, but generally
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| have a gross vehicle weight of over 6000
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| | you can only take them as you make
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| pounds qualify for accelerated tax
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| | payments. Interest rates are a non-issue,
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| write-offs in the year they are bought up
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| | but rebates will affect the amount you
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| to a certain dollar amount. Until
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| | can write off because factory rebates
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| recently, that amount was $25000. In
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| | lower the sales transaction price.MILEAGE
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| simple terms, if you qualify, you could
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| | LIMITATIONS: As with most vehicle related
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| write off up to $25000 of the amount of
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| | deductions, you are going to have to
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| the vehicle in the same year you
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| | document your mileage to protect yourself
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| purchased it, plus the remainder of the
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| | in the case of an audit. Remember, your
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| price over the following four years.GREAT
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| | vehicle must be used a minimum of 50% of
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| NEWS: In May of this year, thanks to the
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| | the time for business purposes to even
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| 2003 Tax Act, the amount was raised to
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| | qualify for the deduction, but the AMOUNT
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| $100,000. That means that you can buy one
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| | of business use will also dictate what
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| or more eligible vehicles and write-off
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| | amount you can write off this year. For
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| the entire amount up to $100,000 on your
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| | instance, lets say you buy a $50,000
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| 2003 tax return! This is all documented
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| | Lincoln Navigator and you use it 100% for
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| in Section 179 of the tax code. Prior to
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| | your business, then you can write off
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| this, you could take advantage of writing
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| | $50,000 this year. But lets take that
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| off depreciation, but it had to be done
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| | same Navigator, and say you only use it
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| over five years.EXAMPLE: So say you spend
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| | for business 60% of the time.... then
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| $40,000 to buy a new truck or SUV thats
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| | your write off for the year is $30,000
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| used 100% in your self-employed business
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| | ($50,000 times 60%=$30,000).To read the
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| activity (meaning you conduct your
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| | rest of this extensive tax code 179
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| operation as a sole proprietor, LLC
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| | including a list of affected vehicles
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| member, or partner). Provided you make
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| | visit your one stop shop to buy new or
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| the vehicle purchase before year-end and
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| | used cars, sell your vehicle, get an
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| start using it for business before then,
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| | online insurance quote, buy spare parts,
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| you can probably deduct the entire
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| | accessories and even an get an extended
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| $40,000 cost on this years business tax
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| | warranty. Original article written by
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| forms.SO WHATS THE CATCH? Only that your
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| | Jerry Reynolds, GM of Prestige Ford in
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| newly acquired vehicle will need to be
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| | Texas.
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