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Write Off That SUV

New tax package bonanza:

    Among the provisions of the tax package just approved by Congress is an increase in the deduction allowed for small-business equipment purchases, which rises from $25,000 to $100,000. That means real estate agents, lawyers, doctors — anybody who files a Schedule C or corporate tax return — can write off the entire cost of virtually any big sport-utility vehicle. The potential tax savings in the top bracket is $35,000.

    The dramatically higher limit greatly simplifies the math. The deduction for SUV purchases was already pretty hefty, but it came in three parts: A $25,000 equipment deduction, plus 30% of the remaining price (courtesy of the 2002 economic stimulus bill), plus the standard five-year depreciation schedule on the remainder. On a $72,000 Range Rover, the deduction came to about $45,000 the first year, for a tax savings of more than $16,000.

    It’s so much easier — and cheaper — to write the whole thing off. Simply multiply the purchase price by your tax rate. The tax savings on that same Range Rover? More than $25,000 in the top brackets. In contrast, those who buy ultra-efficient gas-electric hybrids for personal use get a tax deduction of $2,000, worth at most $700. [MSN] In other words, the bigger the better, as if we need an incentive from government to guzzle on.

About Eric Olsen

Career media professional and serial entrepreneur Eric Olsen flung himself into the paranormal world in 2012, creating the America's Most Haunted brand and co-authoring the award-winning America's Most Haunted book, published by Berkley/Penguin in Sept, 2014. Olsen is co-host of the nationally syndicated broadcast and Internet radio talk show After Hours AM; his entertaining and informative America's Most Haunted website and social media outlets are must-reads: [email protected], Facebook.com/amhaunted, Pinterest America's Most Haunted. Olsen is also guitarist/singer for popular and wildly eclectic Cleveland cover band The Props.

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