How would you like the U.S. government to send you a check that would pay for five years' worth of gasoline?
Well, it can be arranged.
Not everyone is eligible, of course. But if you use a vehicle 100% for business and purchase it, new or used, from a select list of big-time gas-guzzlers, Uncle Sam is ready to help you out.
Yes, I'm talking about the well-publicized special tax break for vehicles with a gross weight of at least 6,000 pounds. Gross weight is the weight of the vehicle including fuel, passengers and payload. Because of this, gross weight can be a good deal more than the empty weight of the vehicle.
Forty-one domestic and 15 foreign SUVs qualify for this tax break. The Porsche Cayenne, a notably business-like vehicle, is among them. As a consequence, while the depreciation write-off for any passenger car used for business is limited to only $2,960 in 2005, down from $10,610 in 2004, those claiming 100% business use of these SUVs could deduct 100% of the $89,665 price of the Porsche Cayenne Turbo during 2003 and until late October 2004. For those who bought in time, the write-off represented an immediate income tax savings of $31,383, provided the buyer was in the 35% tax bracket. Think of it as a bagatelle for the non-indigent from the Jobs and Growth Act of 2003.
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On the other hand, sales of hybrid vehicles are up 960 percent. No information about gas subsidies for them though...
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