I bought a brand new H2 a few days ago... I must admit that I stretched myself to get into my dream, using recent employee discount program.. Just today someone told me about tax advantage.. I had been thinking of opening a part-time business alngside my full-time job with someone, and think it may be a good time to do it...

Can anyone confirm if this is possible, i.e. if I open a part-time business along with my full-time job, can I still reap benefit from this hummer tax advantage?

thanks... looking forward to be a part of this team...

a brand new H2 owner..
tj

I bought a brand new H2 a few days ago... I must admit that I stretched myself to get into my dream, using recent employee discount program.. Just today someone told me about tax advantage.. I had been thinking of opening a part-time business alngside my full-time job with someone, and think it may be a good time to do it...

Can anyone confirm if this is possible, i.e. if I open a part-time business along with my full-time job, can I still reap benefit from this hummer tax advantage?

thanks... looking forward to be a part of this team...

a brand new H2 owner..
tj

I'm not sure but I thought last tax year was the last year the fedgov allowed an accelerated deduction (as much as 50%) for depreciation of your purchase as a business vehicle.

There's probably a tax discussion forum online somewhere you can ask this question, or just google on accelerated vehicle depreciation or 'unjust' tax laws for the filthy rich....

DisposableIncomeAugs

Do not quote me on this as i am not a cpa, but to my understanding in 2004 and previous years you could write off 100% of the purchase price of the vehicle for business use if you were self employed. This is no longer but you can write off depreciation....contact a cpa and they can tell you...if you are starting your own business you will need a cpa anyway. Hope this helps.

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Boss Hoss:
...if you are starting your own business you will need a cpa anyway. Hope this helps. </div></BLOCKQUOTE>

At least you will if you are making money

"but to my understanding in 2004 and previous years you could write off 100% of the purchase price of the vehicle for business use if you were self employed"

This was only for vehicle with a gvwr of 5,000lbs or more...Hummer certainly meets this criteria.

you can still write off the Hummer over 5 years with depreaciation as a piece of biz equipment. You must use it for your biz, no wite off for joe shmoe. If your self employed your cpa should be able to figure it out

04' was the last year for the big write off. You could write off I believe 36,000 at one time. I think all of that good write off is over, just your normal depreciation.

I'm not a CPA but I did stay at a Holiday Inn Express last weekend.

thanks guys for the info..

I am going to register for business next week.. will talk to cpa as you suggested... it does not matter that I register my business 2-3 weeks AFTER the hummer purchase, right?..

this is an exciting group of hummer enthusiasts.. glad to be here..
tj

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">I'm not a CPA but I did stay at a Holiday Inn Express last weekend. </div></BLOCKQUOTE>

Brad scores points with the funny. Nice.

Here is how I understood it with my 2003 H2:

In FY 2003 (April 04 taxes) under IRS Section 179 if you owned a business (Sub S - Corp -LLC -Sole Propr) that was your primary source of income (not a second income source) you could deduct 100% of the Hummer H2 (because of vehicle weight not company vehicle use) as machinery (H1 up to $100K). This one-time loop hole was closed in FY 2004 by congressional action.

Now under IRS Section 179 you can deduct a H2 (plus a few other vehicles that qualify by weight) up to 100% if you can show 100% use (by good documention) of the vehicle for strict and only business use. It is now a "Business Vehicle" by use and not the one-time "machinery" as it was for 2003.

I am not a CPA, but just went through this with an IRS Agent during an audit. The Agent tried to ding my 100% deduction under Section 179 (2003) because I did not have excellent documention (mileage logs - places and events) to show him I used it as a strict business vehicle 100% of the time.

But since I had placed it into service as a business owner in 2003 (purchased in Dec 2002 - delivered in Jan 2003) and it weighed over 7000 lbs, along with the one-time 2003 Section 179 wording; I told him it was a "machinery" purchase to my business and therefore did not need to document useage for business purpose in order to deduct.

Result - 100% deduction (as originally filed) of my 2003 H2 under Section 179. Please understand that this one-time loop hole is no more. But you still can deduct a H2 under Section 179 as a business vehicle in a primary business (not part-time).

Consult you CPA - Good Luck