Tax Information And Guide

Tax Software "Allow me to introduce you to a fabulous opportunity," Chris Thorpe, a sales representative for Hummer of Alaska, writes in a promotion letter. "A tax 'loophole' so big you could drive a Hummer H2 through it! Imagine being able to purchase the #1 large luxury SUV in America today . . . and receive a deduction for the entire purchase amount from your taxes this year!"

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Software Tax "How is this possible?" Thorpe asks. "Thanks to the Bush administration's recent economic stimulus package, small businesses and the self-employed are eligible to deduct the entire purchase cost of new equipment up to $100,000 the year of the purchase." But these provisions are supposed to help farmers and small-business owners buy equipment to transport merchandise and haul stuff. No matter. "The Hummer H2 qualifies for this IRS Sec. 179 deduction by its gross vehicle weight of over 6,000 lbs. Cars and medium sized SUV's don't qualify for this deduction," Thorpe writes. "If you are seriously considering acquisition of a new vehicle, step up to the vehicle that can take you where you want to be, financially and otherwise."

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Every Landlord Tax Deduction So is this pitch working? Oh, yes. Since the letter went out in August, Thorpe estimated his Anchorage dealership, the only one in the state, has sold an additional 35 Hummers at $62,000 each. That's pumping serious money into the local economy, a most substantial stimulus indeed.

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Tax Help Thorpe said he sold perhaps "nine in one month to doctors" who bought them pretty much for the tax benefits. Local buzz is that they're mostly leaving them in the garage, or their wives are driving them around. Lawyers and small-business owners have snapped up the cars -- which get a whopping 10 miles per gallon -- and, given Alaska's rough winters and formidable terrain, no doubt will make great use of them this winter.

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Help Tax The same holds for the rugged wilds of Palm Beach, Fla., where hard-pressed doctors and lawyers need huge gas guzzlers so they can get to clients even during hurricanes. "When people are deciding what they're going to take," a Hummer salesman told the Palm Beach Post recently, "they go for the Hummer for the tax write-off."

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Ernst Ernst Guide Guide Tax Our deserving lawyers, doctors and small-business owners needn't settle for a Hummer. They can shop around. Many SUV-makers -- the Big Three, German and Japanese companies -- have similar 3-ton cars. We've been looking at a lovely Porsche SUV, only $88,000, but may have to wait for another round or two of tax cuts.

Tax Return And energy independence from Mideast oil? So passe.

Return Tax By Al Kamen
Washington Post - 9/26/2003

Topic: Transportation

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