Any accountants on here?

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SUV over 6000 pounds can be written off in that year for the full amount. Instead of writing it off each year for depreciation.

In my case, registered Sole Proprietorship. Buys a $40,000 SUV at 0% interest 5-year note. Writes it off for 2004. Gets back about $10,000 on tax return for money not even paid for yet.

Is this wishful thinking or is there something to this.

 

[flexed1]

in my business before i sold my cpa alway had me write off right away instead of long term depreciation taking a yearly deduction because i knew i was unloading the business. not sure if he would have done this if i was keeping it. we wrote off computers, furniture etc and took the deprecaition deduction upfront.

 

[MattTheSkywalker]

The 20% annual depreciation schedule is out the window - you can write it off if it has a gross vehicle weight of 6000 pounds or more.

 

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Got the final word from my accountant:

It is called recapture. If the vehicle is not used by the business for it's entire life, the balance of the depreciation should the business close become income