On Friday I wrote about the popularity of Hummers in Marin County, CA. A megnut reader sends a link to surprising article, which helps explain the preponderance of SUVs in wealthy areas like the Bay Area. Apparently a loophole in our tax laws allows SUV and truck owners a big tax break:
Here's how the SUV tax break works:
Suppose a business owner wants to purchase a $45,000 luxury SUV for use in his business. He or she could write off $24,000 of the cost under section 179 of the tax code as accelerated depreciation. Then the buyer could write off additional depreciation of the remaining $21,000 under a five-year schedule — 20 percent, or $4,200, in the first year.
That's a total $28,200 tax write-off.
The tax credit if you buy a fuel-efficient hybrid vehicle? $4,000.