Tax deduction for diesel truck?

I know that in 2003 there was a tax loophole where you could take a tax deduction for the purchase of a new diesel truck with a GVWR over 8800 lbs. It somehow qualifies as a "low emmissions vehicle". Does anybody know if you can still do that for 2004 taxes?

 

I believe that you can deduct the sales tax off IRS taxes for vehicle purchases in 2004 and 2005. I'm sure gonna try! Oo.

 

You can only deduct sales tax if you live in a state which has no state income tax. I believe there are only about 10 of them. See IRS publication no. 600 for more info.

 

Yep, Texas is one of those 10... so far.



Bill

 

What I think you are referring to was the ability to full depreciate (100%) a new vehicle (as a business expense) in the first year for business owner or self employed. There was a minimum weight requirement (8800 GVW ?). This tax benefit passed into history as of 1/1/05. If you did not own a business it was not available to you (Schedule C kinda stuff). This was my understanding of it.

 

I believe you are thinking of the Section 179 deduction. It started out as a $100,000 tax deduction. It was later reduced to only about $25,000 if I remember right. You have to have had a small business and the truck must have been used at least 50% of the time for legitimate business reasons. The mileage for each trip must be documented. Talk to your accountant/CPA for clarification. In my case, I worked for another company most of the year. I then started my company at the end of the year. I bought the truck in June, and used it about 56% of the time for business. It may still work out better in the long run to do a normal depreciation and use the actual expense method to determine your taxes instead of using the standard mileage deduction.

 

I live in Texas. Guess what I will be doing!! Deducting $$ Oo.



I sure would like to talk the wife into trading this next year , but she is dead set against it.



on edit: P. S. did not know about this when I bought the truck... one of the few times in life I have gotten lucky. The wife and our daughter are the other two! Oo.

 

I think you can claim either state income tax or state sales tax, but not both. For those with no state income tax, the choice is obvious. For the rest of us, the state income tax is usually greater than any sales tax you pay.

 

Under the 9/11 tax incentive business are able to accellerate depretiation to 55% for the year that they purchase new equipment. I bought my CTD on 9/10/04 thinking that it expired on 9/11 only to find out that it was extended to 12/31/04.

I have seen current advertisements from trailer sales companies referring to this incentive, it may still be available.

 

Seems like I heard that the weight was raised to 14000 for this deduction?

 

I know what your talking about...

There was a 600. 00 tax credit for buying an energy efficient diesel vehicle

I am not sure if this is still avail. Heck I had to tell my tax man about it he never heard of it before but I got it

 

The deduction for low emission vehical purchaces clearly states diesel does not qualify



Maybe if you have some solar panels and a bed full of batterys you may sneek in ??





What I was mad about ... Unckle sam took $1500 more FED tax out this year than last and I got about $700 less back from him ??? THATS NUTS



$9700 Standard deduction this year !!!!!!!!!!!!!!!! you can tell a REP. is in the House



I claimed everything I could and came up $400 short I dont know how any normal person can beat the standard !! maybe if they had a $100000 loan for 5 years !



DM