Since you asked, Robin, here is the loophole on getting a $25K write off by buying a vehicle that weighs over 6000lbs:
"A 1997 provision in the U.S. tax code (Section 179) provided small businesses with a tax write-off of up to $25,000 for a vehicle weighing more than 6,000 pounds- used 50% of the time for work purposes. The original intent behind this provision was to encourage investments in pickup trucks, minivans, and other needed service vehicles. A far smaller incentive was provided for cars—less than $7,000 over two years.
The explosion of SUV, pickup, and minivan sales in America’s passenger vehicle fleet has turned this small business benefit into a massive loophole in the tax law. Currently, 38 different passenger SUVs including the Lincoln Navigator, which nets a combined 15 miles per gallon according to the Environmental Protection Agency (EPA), the Cadillac Escalade (16 mpg), the BMW X5 (18 mpg), the Mercedes-Benz ML55 (16 mpg), and the notorious Hummer H2 (estimated 11 mpg) all weigh more than 6,000 pounds. This loophole allows some of the least fuel-efficient passenger vehicles on the road today to qualify for a significant tax break.
In 2003, the Bush administration proposed increasing the tax deduction to $75,000. Lawmakers responded by expanding it to a whopping $100,000 as part of the $350 million tax cut package. Yet Congress did not change the weight-based classification of the vehicles, creating a huge benefit for the largest, least efficient vehicles.
Accountants, SUV dealers rush to capitalize
Around the country, auto dealers such as 'the Car Guy' Jerry Reynolds in Texas and hundreds of accountants and online tax management sites have been encouraging small business owners such as doctors, lawyers, and realtors to rush out and take advantage of this tax windfall. One advertisement from Dugan & Lopatka, an accounting firm in Wheaton, IL, reads, 'Write-Off 100% of Your New SUV? Yes, If It’s Under 100,000!'
According to a November 7, 2003, article in the Washington Post, Dugan & Lopatka were so inundated with phone calls regarding their advertisement they nearly had to shut down their switchboard. Industry analysts predicted a spike in purchases last November and December due to the typical year-end rush to claim the deduction for tax returns.
Senators push for closure of loophole
Several proposals have been offered to fix the loophole, at one point, the Senate Finance Committee staff actually proposed raising the weight limit to 14,000 pounds, enough to disqualify even the Hummer. Bills introduced by Senator Barbara Boxer (D-CA) and Representative Anna Eshoo (D-CA) would take a different approach to closing the SUV tax loophole. In The SUV Business Tax Loophole Closure Act, they propose that SUVs weighing 6,000 pounds or more simply be reclassified as cars under the tax code.
In October 2004, after the House Ways and Means Committee approved a three-year extension of the $100,000 loophole, a House-Senate conference committee negotiated a roll back in the deduction to its original amount of $25,000 as part of the larger Corporate Tax Bill. While tightening this loophole is certainly noteworthy, it is by no means the end of significant tax breaks for gas-guzzling SUVs. According to an analysis in the Detroit News, besides the $25,000 basic equipment deduction, SUVs will still qualify for "bonus depreciation," an added write off of 30 percent of the purchase price above $25,000. Beyond that, additional costs can be deducted according to regular depreciation rules, or 20 percent in the first year. For example, a business owner purchasing a Hummer H1, with a sticker price of $106,185, would be able to deduct $60,722 in the first year under the revised rules: a $25,000 equipment deduction, $24,356 in bonus depreciation, and $11,366 in regular depreciation."
Source
Now, what I need to find out is if the BMW X5 really does qualify. The article above claims it does, but the BMW website states that the "curb weight" of the X5 is 5,000LBS, but the towing capacity is 6,000LBS and someone told he that they heard that the above write off applies to actual towing capacity of 6,000LBS +. Are there any tax accountants in the house?!
Tax loops holes, Paris Hiltons boob and sissy boys in ruffly panties...only a mix you'll find at Summer's Shenanigans...haha
