THis post is exactly why you don't spike your egg-nog with rum, then
post on Usenet...
Another troll, another day.
Years ago, they decided to punish anyone who used cars and station wagons
for business purposes. But the rules for expenses associated with 'trucks'
were much more reasonable. So people switched to trucks.
When Congress increased the definition of a 'truck' for the purpose of
expense allowances from 6000 GVW to 8000 GVW, we saw the advent of Hummers,
Excursions, and even larger vehicles.
As long as the tax laws are going to punish businesses who use small cars,
we're going to be stuck with big trucks.
--
Paul Hovnanian pa...@hovnanian.com
----------------------------------------------------------------------
Have gnu, will travel.
>Thank the IRS.
>
>Years ago, they decided to punish anyone who used cars and station wagons
>for business purposes. But the rules for expenses associated with 'trucks'
>were much more reasonable. So people switched to trucks.
>
>When Congress increased the definition of a 'truck' for the purpose of
>expense allowances from 6000 GVW to 8000 GVW, we saw the advent of Hummers,
>Excursions, and even larger vehicles.
>
>As long as the tax laws are going to punish businesses who use small cars,
>we're going to be stuck with big trucks.
I think you have over simplified the situation some. What the IRS was
attempting to do was prevent a non-business from expensing the family
car. A formally organized business has less problems in this
situation, and there are methods to do what you want (have a smaller
car for your business...) I'd strongly recommend you contact your CPA,
or tax consultant and they will be glad to find a solution to your
problem.
As far as "Stuck with big trucks" that bit makes no sense. No business
drives a big truck unless they have to. The operating costs far exceed
any (perhaps non-existant) tax benefits. I know, we use big trucks
(over 8K GVW) and would gladly use smaller ones but it is not
feasible--ever loaded a couple of thousand pounds of stock in a Prius?
But the family truck is perfectly OK.
> A formally organized business has less problems in this
> situation, and there are methods to do what you want (have a smaller
> car for your business...) I'd strongly recommend you contact your CPA,
> or tax consultant and they will be glad to find a solution to your
> problem.
>
> As far as "Stuck with big trucks" that bit makes no sense. No business
> drives a big truck unless they have to.
The tax break for a truck is now 8000 GVW. The rules applying to
anything smaller are so onerous, big trucks just make financial sense.
> The operating costs far exceed any (perhaps non-existant) tax benefits.
Work the numbers. Taxes on small vehicles are so high, gas mileage just
doesn't matter.
> I know, we use big trucks
> (over 8K GVW) and would gladly use smaller ones but it is not
> feasible--ever loaded a couple of thousand pounds of stock in a Prius?
--
Paul Hovnanian mailto:Pa...@Hovnanian.com
------------------------------------------------------------------
Relax, its only ones and zeros!