WP:SUV Tax Break A Marketing Bonanza

Insane3D

Elite Member
May 24, 2000
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:disgust:

The tax change?s power stems from two concurrent forces: the size of the write-off, $100,000, and the metastasizing of passenger cars into behemoths. Six thousand pounds once seemed like a reasonable demarcation between passenger vehicle and business necessity. But now, three-ton luxury cars are becoming commonplace, and they do not have to be the obvious leviathans, such as five-ton Hummers and 8,600-pound Suburbans. Chevy Trailblazers, Lincoln Aviators, Land Rover Discoveries and trendy Volkswagen Touaregs just meet the limit.
So many new models are just over 6,000 pounds that Reynolds suspects that automakers have their eyes on the tax code. A 2003 two-wheel-drive Dodge Durango weighs 6,050 pounds.
 

dpm

Golden Member
Apr 24, 2002
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When Congress this year decided to allow small-business owners, doctors, lawyers and real estate salespeople to deduct up to $100,000 from their taxable income for the purchase of a luxury SUV
I can see how this would be legitimate for small business owners,yes, doctors - maybe, real estaters, yep, but lawyers? Whats the justification for lawyers needing an SUV other than they are rich and the Cayenne is fashionable? and in that case what do they need a tax break for?
 

BaliBabyDoc

Lifer
Jan 20, 2001
10,737
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How do you distinguish the SUV utility for a doctor from a lawyer? Most of the real estate signs I see these days are small. And of course the real estate agents capable of buying $70K+ vehicles . . . usually don't put signs on the lawn, anyway.
 

charrison

Lifer
Oct 13, 1999
17,033
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Originally posted by: dpm
When Congress this year decided to allow small-business owners, doctors, lawyers and real estate salespeople to deduct up to $100,000 from their taxable income for the purchase of a luxury SUV
I can see how this would be legitimate for small business owners,yes, doctors - maybe, real estaters, yep, but lawyers? Whats the justification for lawyers needing an SUV other than they are rich and the Cayenne is fashionable? and in that case what do they need a tax break for?
Granted this law was not designed for suvs, it was more designed for trucks and other heavy equipment. A few SUVs just happen to qualify.
 

DealMonkey

Lifer
Nov 25, 2001
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Yeah, just a few vehicles qualify

ELIGIBLE SUVs:

2003 Cadillac Escalade
2003 Chevrolet Suburban
2003 Chevrolet Tahoe
2003/04 Chevrolet TrailBlazer
2003 Dodge Durango
2004 Ford Excursion
2004 Ford Expedition
2004 GMC Envoy
2003 GMC Yukon Denali
2003 Hummer H1
2003 Hummer H2
2003 Isuzu Ascender
2003 Land Rover Discovery
2003 Land Rover Range Rover
2003 Lexus LX470
2004 Lincoln Aviator
2004 Lincoln Navigator
2003 Mercedes-Benz M-Class ML320
2003 Mitsubishi Montero Limited
2003 Porsche Cayenne
2003 Toyota Land Cruiser
2003 Toyota Sequoia
2004 Volkswagen Touareg


ELIGIBLE PICKUPS:

2003 Cadillac Escalade
2003 Chevrolet Avalanche
2004 Chevrolet Silverado
2003 Dodge Dakota
2003 Dodge Ram 1500
2003 Dodge Ram 2500
2003 Dodge Ram 3500
2003 Ford F-150
2004 Ford F-250
2004 Ford F-350
2004 GMC Sierra 1500
2003 GMC Sierra 2500
2003 GMC Sierra 3500
 

tnitsuj

Diamond Member
May 22, 2003
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Originally posted by: DealMonkey
Yeah, just a few vehicles qualify

ELIGIBLE SUVs:

2003 Cadillac Escalade
2003 Chevrolet Suburban
2003 Chevrolet Tahoe
2003/04 Chevrolet TrailBlazer
2003 Dodge Durango
2004 Ford Excursion
2004 Ford Expedition
2004 GMC Envoy
2003 GMC Yukon Denali
2003 Hummer H1
2003 Hummer H2
2003 Isuzu Ascender
2003 Land Rover Discovery
2003 Land Rover Range Rover
2003 Lexus LX470
2004 Lincoln Aviator
2004 Lincoln Navigator
2003 Mercedes-Benz M-Class ML320
2003 Mitsubishi Montero Limited
2003 Porsche Cayenne
2003 Toyota Land Cruiser
2003 Toyota Sequoia
2004 Volkswagen Touareg


ELIGIBLE PICKUPS:

2003 Cadillac Escalade
2003 Chevrolet Avalanche
2004 Chevrolet Silverado
2003 Dodge Dakota
2003 Dodge Ram 1500
2003 Dodge Ram 2500
2003 Dodge Ram 3500
2003 Ford F-150
2004 Ford F-250
2004 Ford F-350
2004 GMC Sierra 1500
2003 GMC Sierra 2500
2003 GMC Sierra 3500
Isn't that pretty much all the large SUV's in that list? I can understand the trucks, but a freaking Escalade, or an H1? What a ripoff.
 

charrison

Lifer
Oct 13, 1999
17,033
1
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Originally posted by: DealMonkey
Yeah, just a few vehicles qualify

ELIGIBLE SUVs:

2003 Cadillac Escalade
2003 Chevrolet Suburban
2003 Chevrolet Tahoe
2003/04 Chevrolet TrailBlazer
2003 Dodge Durango
2004 Ford Excursion
2004 Ford Expedition
2004 GMC Envoy
2003 GMC Yukon Denali
2003 Hummer H1
2003 Hummer H2
2003 Isuzu Ascender
2003 Land Rover Discovery
2003 Land Rover Range Rover
2003 Lexus LX470
2004 Lincoln Aviator
2004 Lincoln Navigator
2003 Mercedes-Benz M-Class ML320
2003 Mitsubishi Montero Limited
2003 Porsche Cayenne
2003 Toyota Land Cruiser
2003 Toyota Sequoia
2004 Volkswagen Touareg


ELIGIBLE PICKUPS:

2003 Cadillac Escalade
2003 Chevrolet Avalanche
2004 Chevrolet Silverado
2003 Dodge Dakota
2003 Dodge Ram 1500
2003 Dodge Ram 2500
2003 Dodge Ram 3500
2003 Ford F-150
2004 Ford F-250
2004 Ford F-350
2004 GMC Sierra 1500
2003 GMC Sierra 2500
2003 GMC Sierra 3500

Many of the vehicles you listed are not above 6000 lbs. Even the f-150 only weighs in at about 4000 lbs. I think someone is not paying attention.
 

Apex

Diamond Member
Oct 11, 1999
6,511
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www.gotapex.com
Originally posted by: charrison
Originally posted by: DealMonkey
Yeah, just a few vehicles qualify


Many of the vehicles you listed are not above 6000 lbs. Even the f-150 only weighs in at about 4000 lbs. I think someone is not paying attention.
Indeed, someone isn't paying attention.

It's Gross Vehicle Weight, not curb weight.

:)
 

DealMonkey

Lifer
Nov 25, 2001
13,136
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Check it out for yourself on Jerry Reynold's site. He's the guy mentioned in the MSNBC article linked to by the OP. There are about 20 models of F150 over 6000# including the supercabs, king cabs, supercrew, etc.
 

Apex

Diamond Member
Oct 11, 1999
6,511
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www.gotapex.com
Originally posted by: DealMonkey
Check it out for yourself on Jerry Reynold's site. He's the guy mentioned in the MSNBC article linked to by the OP. There are about 20 models of F150 over 6000# including the supercabs, king cabs, supercrew, etc.
A bit more info:

"trendy" VW Touareg V8 w/air suspension:

5300lb Curb Weight
6791lb Gross Vehicle Weight

Section 179 ignores curb weight, only depends on gross vehicle weight.
 

ReiAyanami

Diamond Member
Sep 24, 2002
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they should tax SUVs considering the extra wear they put on the road. only a matter of time before everybody's driving big rigs
 

charrison

Lifer
Oct 13, 1999
17,033
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Originally posted by: DealMonkey
Check it out for yourself on Jerry Reynold's site. He's the guy mentioned in the MSNBC article linked to by the OP. There are about 20 models of F150 over 6000# including the supercabs, king cabs, supercrew, etc.
It looks like the loophole here is curb weight instead of Gross weight. Most of the vehicles on this list have a curb weight well below 6000 lbs. The Gross weight includes passengers and cargo. So any 4000 lb vehicle with a 2000+ lbs of cargo capacity qualifies.

A light truck like the nissan frontier almost qualifies for this tax break.

I will have to concede at this point, that the loophole is far wider than I thought. However, I wont complain about businesses buying most of these vehicles.


 

charrison

Lifer
Oct 13, 1999
17,033
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Originally posted by: ReiAyanami
they should tax SUVs considering the extra wear they put on the road. only a matter of time before everybody's driving big rigs
They do pay more in tax at the pump. Remember those gas taxes go toward highway funds.
 

glugglug

Diamond Member
Jun 9, 2002
5,340
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um..... you're serious about the gross vehicle weight? (Not that the law isn't ridiculous enough to begin with....)

In that case pretty much any pickup with a decent carrying capacity qualifiies, not just 2003 models. What portion of SUVs purchased today ever carries even 1/20 of its payload capacity?

That is totally insane. If they are going by gross weight it should be 5 or 6 tons MINIMUM. Unfortunately that would bring about bigger SUVs, but if they are going to have zero foresight they should at least have set the tax deduction cutoff above a normal already existing vehicle's capacity.

Hell, my first car, an 83 Boneville Brougham, weighed more than 3 tons.
 

charrison

Lifer
Oct 13, 1999
17,033
1
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Originally posted by: glugglug
um..... you're serious about the gross vehicle weight? (Not that the law isn't ridiculous enough to begin with....)

In that case pretty much any pickup with a decent carrying capacity qualifiies, not just 2003 models. What portion of SUVs purchased today ever carries even 1/20 of its payload capacity?

That is totally insane. If they are going by gross weight it should be 5 or 6 tons MINIMUM. Unfortunately that would bring about bigger SUVs, but if they are going to have zero foresight they should at least have set the tax deduction cutoff above a normal already existing vehicle's capacity.
Curb weight would be a good cut off. The f-350 would not even qualify for such a tax break(5000lb).
 

glugglug

Diamond Member
Jun 9, 2002
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A 6000 lb curb weight limit (vs. gross weight) would inspire the return of the muscle car. I think you'd find most American cars in the 70s were above that limit.
 

charrison

Lifer
Oct 13, 1999
17,033
1
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Originally posted by: glugglug
A 6000 lb curb weight limit (vs. gross weight) would inspire the return of the muscle car. I think you'd find most American cars in the 70s were above that limit.
Laws rarely do what you want them to.
 

wirelessenabled

Platinum Member
Feb 5, 2001
2,190
41
91
Originally posted by: Apex
Remember, it also has to be classified a truck, not a car.

This was originally targetted at farmers.

I guess the $150 billion farm subsidy/welfare bill wasn't enough to keep farmers in the style to which they have become accustomed:disgust:
 

Apex

Diamond Member
Oct 11, 1999
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www.gotapex.com
Originally posted by: wirelessenabled
Originally posted by: Apex
Remember, it also has to be classified a truck, not a car.

This was originally targetted at farmers.

I guess the $150 billion farm subsidy/welfare bill wasn't enough to keep farmers in the style to which they have become accustomed:disgust:

Heh. I hear you. Truth be told though, farmers on the average aren't living well, and that's sad, because they're hard working people. There's just too many of them out there. Production technology and practices are so good that we could do with just 1/3 of the farmers & farmland we have now (the real issue with food is distribution, not production). If it wasn't for the subsidies, they might have to learn other marketable skills. We wouldn't want that to happen.

Meanwhile, the $100k heavy equipment ceiling makes for some pretty interesting vehicle choices.
 

ReiAyanami

Diamond Member
Sep 24, 2002
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I guess the $150 billion farm subsidy/welfare bill wasn't enough to keep farmers in the style to which they have become accustomed

nearly all of which goes to large corporations.
the only profitable farms are the largescale corporate run ones. they pay big contributions to congressmen running for re-election and of course when they get back in congress, they make sure the farm subsidies happen. one of the most blatant example would be the florida sugar cartel. they are the largest contributors there on both the democrat and republican side and guess what, our sugar prices are twice that of the world market. this costs american consumers $2.4 billion per year, but hey a few dozen politicians get a few million each
 

dmcowen674

No Lifer
Oct 13, 1999
54,894
46
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www.alienbabeltech.com
When the equipment write-off was limited to $25,000, it was not very attractive to car buyers, said Bob Trinz, a senior tax analyst at RIA. A radiologist could easily purchase that much X-ray equipment in a year, using up the allotted tax break.

But now, Trinz said, there?s plenty of room left for that $65,000 Porsche Cayenne. ?The tax breaks have never been more compelling than they are this year,? Trinz said.
Or as Reynolds noted in his advertisement, with a new 2003 Ford F-150 XL Supercab flareside truck with automatic, air and more going for $18,499, ?You could buy five and deduct the entire amount from your 2003 income taxes!?

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Another clear example of the corruptness in the U.S.

It's so sad that the rich boys CEOs/Politicians pat each other on the back openly in public like this is where Trickle Down Economics actually works but in such a negative way.

--- I know the pundits in here will chime in and say how is that negative, they are putting people to work and in getting such big ticket items sold etc etc blah blah blah. Doing the wrong thing continues to bite the U.S. in the butt and make us a laughing stock of the world.
 

DealMonkey

Lifer
Nov 25, 2001
13,136
1
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Originally posted by: dmcowen674
Another clear example of the corruptness in the U.S.

It's so sad that the rich boys CEOs/Politicians pat each other on the back openly in public like this is where Trickle Down Economics actually works but in such a negative way.

--- I know the pundits in here will chime in and say how is that negative, they are putting people to work and in getting such big ticket items sold etc etc blah blah blah. Doing the wrong thing continues to bite the U.S. in the butt and make us a laughing stock of the world.
If only we could find a way to post the ten commandments in every car dealership, maybe this sort of thing wouldn't happen. Right, Dave? ;)
 

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