Limits on deducting SUVs are coming to close a tax loophole

Only SUV's weighing over 14,000 pounds can be expensed after 2007.  Currently, up to $25,000 of the cost of SUVs with loaded vehicle weights between 6,000 and 14,000 pounds can be expensed.  The balance of the cost is depreciated over six years.  If you wait until 2008 to buy an SUV in that weight range, your first-year write-off will be limited to $2,960.

Some vehicles will still qualify for full expensing:  Pickup trucks with a separate cargo area at least five feet in length, farm vehicles, and trucks or vans used to transport substantial amounts of equipment.

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