So does anyone know for sure if the toyota meets the specs for the size truck (in tons) to qualify as a tax write off if used for business truck?

Also, do you have to get different class plates than normal plates for it to qualify for that?

Just wondering if anyone knows.

 

i think if you can prove it was for work you are fine.......

 

My parents write off the milage they put in on all their cars as long as the trip is business. That depends on how youre taxes are set up though. If you don't put in a lot of miles you are better off with a standard deduction. I don't think the size matters regaurdless.

 

size shouldnt matter, even if its a straight work truck... however, the plates are the same, but insurance will be differnt, doubt that matters for tazx purposes... my boss has a worktruck, his personal vehicle but he owns a business, its got a regular license plate but i know his insurance only covers him and his wife as drivers as its for commercial use.....like his kids arent supposed to drive it....

 

There's a special tax loophole that allows business owners to deduct the cost of their trucks of a certain weight class that are used for busness. It's a better deduction than the mileage deduction that most of us use for our cars. That's how a lot of these owners are buying large SUV's, because its cost comes right off their taxes, where a car would only qualify for a much lower deduction. I think you better talk to a CPA, they could advise you better than most of us here. We're pretty good gearheads, but we don't know ˟˟˟˟˟ about money...Which is why most of us fix our own vehicles.

 

The "law" just recently changed. Now Hummer buyers cannot write them off due to their weight. I think the 4Runner still falls below the lower weight requirement. There is an article in this or last month's Car and Driver, but for some reason I could not find it doing a quick scan.

 

I think that weight class was around 6000 lbs. It was meant as a break for farmers that had to buy farm equipment for use on thier farm if I remember correctly.

 

I noticed the '05 'Runner GVWR was bumped to 6,005 lbs. It should qualify for the business equipment deduction if it was placed in service before 1/1/05, but check with your accountant.

 

Yep. Like my inlaws on both sides. But once again our gov screwed it up and allowed a bunch of folks to take the deduction who really didn't need it. Can't wait to see how screwed up the next revision of the income tax code (the simplified one) is gonna be.

 

the 2004 model year the V8 4X4 had a GVWR of 5,710. The SUV tax loophole is based on GVWR, and not curb weight. A compelling question is whether or not Toyota made any changes (suspension/drivetrain) to account for the 290 lbs. increase to bump it over the 6000 lbs. requirement for the tax loophole, or whether they just bumped it up to qualify. The VVTI doesn't count (IMO) because the pre-VVTI could've easily moved the 6000 lbs. requirement as well. I am seriously considering taking a shot at using the loophole based on the arguement that no significant changes were completed by the mfg. to account for the 2005 GVWR, and that the 2004 can safely handle 6000 lbs. as well. I may also consider doing a small suspension mod that one could argue would allow an additional 300 lbs. of cargo-carrying capacity, just in case.

 

If I recall correctly, the loophole allowed a $25,000 one-time deduction for utility vehilces/trucks that have a GVWR of 6,000 lbs. or more. As an example, if you are in a 33% tax bracket, that would equate to roughly a $8,250 reduction of your income tax liability. That's pretty significant. I'm not an accountant, so anyone considering this should verify with their tax person.

 

I believe it's 8000 lbs. I bought a Ford E-250 van for our bike shop. I wasn't charge sales tax, but it's really for the business.

 

1. Any vehicle can be used for a tax deduction if used for business purposes. This can be either through the mileage deduction or as a percentage write off based on the actual costs involved (of the vehicle, insurance, etc.). What you should choose depends on your situation and can vary widely.

2. If the GVWR is 6,000 pounds or more and the vehicle is used for business, you MAY qualify for a different deduction. That deduction is $25,000 + 30% bonus depreciation + 20% first-year depreciation. (A GVWR of over 14,000 pounds qualifies for a $100,000 deduction.) You must use the vehicle more than 50% for business AND be able to document it. The total deduction is based on the amount used for business. So, for example, if the car costs $40,000 the deduction would be $25,000 (base deduction) + 30% bonus depreciation (30% of 40,000 - 25,000 = $4,500) + 20% first-year depreciation (20% of 40,000 - 25,000 - 4,500 = $2,100) = $31,600 total first-year deduction (max). This is then multiplied by the amount you use your truck for work. If you use it for work 80% of the time, the total would be $25,280.

3. If the truck is both a personal and work truck and you claim much more than 80% for work, you better have REALLY good records because you're likely to be asked to show them during an audit.

4. Become familiar with what is and isn't a valid business trip. For example, driving from your home to the office is NOT considered as a business trip.

5. Not all business use will qualify. See an accountant for more information about your particular situation.