[quote=afx114][quote=flu]Weight gain wasn’t just because of safety, but a good part of it has to do with it too.[/quote]
Yep. Another big reason for vehicle weight gain is the 6,000lb threshold for a significant tax write-off, as vehicles over 6,000 pounds are not subject to the annual depreciation caps. This is why you’ll find many luxury cars weighing just over 6k. I also wonder how much this contributed to the SUV craze of the last decade.[/quote]
Well, I’m not sure if car manufacturers intentionally put weight into the car for this purpose, but it did affect a lot of purchases…This loophole though only applies to trucks/suvs, and it was closed down for suv’s… Not true for passenger cars.. The oophole that considers truck/suv’s as “machinery/equipment”, and the loophole use to allow one to write off $100k in depreciation. But SUV’s were later capped to $25k…(during Pres Bush administration). So currently, the ridiculous limits only apply to trucks/vans, not SUVs (and never passenger cars).
“Depreciation deductions for most cars and trucks are limited by the “luxury car/passenger vehicle” limitations imposed by the IRS under Code Section 280(f). However, certain vans and trucks are not subject to this restricted write-off. Vehicles with a Gross Vehicle Weight Rating (GVWR) greater than 6,000 lbs. avoid these caps or limits and may be treated like 5 Year machinery and equipment”.
If your truck or van exceeds 6,000 lbs in gross vehicle weight rating, the full depreciation deduction is allowed. You can even use the Section 179 expensing election and take up to $100,000 in the first year — plus the regular depreciation deduction on the remaining balance.
President Bush signed a law on October 22, 2004 that closed “the SUV loophole”. Now there is a $25,000 limit instead of the $100,000 limit on Sec. 179 write-off for Sport Utility Vehicles (SUV’s).
