Here is a link to an interesting article from Slate magazine. Looks like the American public may be smartening up after all. But then we already knew that, didn't we.
http://slate.msn.com/id/2096191
http://slate.msn.com/id/2096191
Hummer vs. Prius
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Good article!
I also followed one of the links in that article and almost fainted... Did you know you could get $100,000 tax deductable for buying a Hummer?
http://www.azcentral.com/arizonarepubli ... er01.html#
Dang! Should I change my mind now?! :twisted:
I also followed one of the links in that article and almost fainted... Did you know you could get $100,000 tax deductable for buying a Hummer?
http://www.azcentral.com/arizonarepubli ... er01.html#
Dang! Should I change my mind now?! :twisted:
micemommy,
Once you pick yourself up off the floor, let me explain that tax deduction. First, the deduction is allowed only if the car is used for business purposes, which does not include commuting to and from work. Second, the deduction is for depreciation, which is allowed for any car used for business purposes, BUT, for cars weighing less than 6,000 pounds, the annual deduction is limited by what is known as the luxury auto limits. It means you still get to write off the full cost of the car, but it takes longer to do so because of the annual limits.
Congress in its infinite wisdom exempted vehicles over 6,000 pounds from the luxury auto limits, intending to apply to trucks, etc. used for construction, delivery, etc. that don't lend themselves to personal use. But the loophole in the law applies it to any vehicle over 6,000 pounds used for business, which would include Hummers, Escalades, GMC Yukon, and a number of others. So whether it intended to or not, Congress ended up giving a tax benefit to people who buy gas guzzlers, even if something like a Prius would serve their purposes.
What a country!
Once you pick yourself up off the floor, let me explain that tax deduction. First, the deduction is allowed only if the car is used for business purposes, which does not include commuting to and from work. Second, the deduction is for depreciation, which is allowed for any car used for business purposes, BUT, for cars weighing less than 6,000 pounds, the annual deduction is limited by what is known as the luxury auto limits. It means you still get to write off the full cost of the car, but it takes longer to do so because of the annual limits.
Congress in its infinite wisdom exempted vehicles over 6,000 pounds from the luxury auto limits, intending to apply to trucks, etc. used for construction, delivery, etc. that don't lend themselves to personal use. But the loophole in the law applies it to any vehicle over 6,000 pounds used for business, which would include Hummers, Escalades, GMC Yukon, and a number of others. So whether it intended to or not, Congress ended up giving a tax benefit to people who buy gas guzzlers, even if something like a Prius would serve their purposes.
What a country!
Absoultely true! When I did my taxes my accountant said that a doctor just before me had written off his Hummer as a "business expense". Yeh, like making house calls? Well, if gas gets to $5 o4 $6 per gallon we may have the last laugh yet. My dad tells me in Marin County (CA) a lot of stations are at $2.75 and with the Saudis admitting (see the links) that production has peaked, it ain't going to get any cheaper!
Forecast of Rising Oil Demand Challenges Tired Saudi Fields, by Jeff
Gerth, February 24, 2004
http://www.nytimes.com/2004/02/24/business/24OIL.html
Saudis Debate Expert in U.S. on Outlook For Their Oil, by Jeff Gerth,
February 25, 2004
http://www.nytimes.com/2004/02/25/busin ... 25oil.html
Forecast of Rising Oil Demand Challenges Tired Saudi Fields, by Jeff
Gerth, February 24, 2004
http://www.nytimes.com/2004/02/24/business/24OIL.html
Saudis Debate Expert in U.S. on Outlook For Their Oil, by Jeff Gerth,
February 25, 2004
http://www.nytimes.com/2004/02/25/busin ... 25oil.html
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