I want to buy a GMC Acadia for my business and take advantage of the SUV/Truck tax incentive?

Question

This is per IRS AJCA of 2004, section 280F, and section 179. The problem is the Acadia is NOT built on a truck frame. It meets the Gross Vehicular Weight of greater than 6000 pounds, but it is sketchy in the IRS rules of whether or not it is elegible for the 25% first year deduction. How can I tell if the GMC Acadia qualifies for this IRS deduction?

Answer 1

I'm not aware of any SUV "incentive", especially under Section 179. Actually, there is a DIS-incentive for SUVs in Section 179 that limits Section 179 deductions on most big SUVs to $25,000 regardless of the price paid. If the Acadia is over 6,000 lbs, it's in the restricted group.

Answer 2

I believe the Acadia is like the Yukon. And the Yukon works. How to find out? Actually quite easily...go out to the door of the vehicle...open it up and look at the embossed tab on the inside of the door. If it's GVW >6000 lbs then you're good to go. If it gets audited then take the agent out and show them yourself.

Pub 946 says any heavy SUV vehicle that weighs more than 6000 pounds and is designed to carry passengers over roads. Doesn't imply truck chassis or the like. I believe that is only relevent when deducting on an annual basis rather than getting the full 25k depreciation up front.

But you would want to talk to your CPA just to make sure.