|
|
|
|
Home / Services / Calculators / Newsletter / Archives Vans and Light Trucks The Internal Revenue Code limits the deductions available for autos, trucks and vans that weigh less than 6,000 pounds. Effectively, only vehicles that cost less that $15,300 can be depreciated in 5 years. This has caused a hardship for businesses that require trucks and vans that cost much more, but are needed for business reasons. The IRS has just issued a new regulation effective July 7, 2003 that addresses this issue. Now vans and light trucks can recover the cost up to $23,000 over 5 years. This applies only to vans and light trucks placed in service after 2002. The amount of depreciation allowed will be adjusted for inflation. This new regulation will also exclude vans and light trucks from these limits Qualified Nonpersonal Use Vehicles. "Vans and light trucks that have been specially modified, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name, so that they are not likely to be used more than a de minimis amount for personal use. These specially manufactured or modified vehicles do not provide significant elements of personal benefit, and the taxpayer is unlikely to purchase these vehicles unless motivated by a valid business purpose that could not be met with a less-expensive vehicle." These Qualified Nonpersonal Use Vehicles will be treated as if the vehicles weighed more than 6,000 pounds. If you have a van or light truck that you have modified and think it qualifies for this treatment, be sure to inform us so you can maximize your deduction. If you have any questions about this issue, please contact us and we will answer them.
(August, 2003 Newsletter)
James E. Newland, CPA 939 Center Road Eastlake, Ohio 44095 440-951-9799 |
|
Send mail to
webmaster@newlandcpa.com with questions or comments about this web site.
|