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Discussion Starter #1
Does anyone know for certain if purchasing a Ridge in 2005 qualifies for that govt. tax break on light trucks? Does that break still exist? :confused:
 

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My 2006 weighs in at 6050, which meets the 179 depreciation limit set be the feds. To take advantage, first seek advise of a pro, but the basics are:

you must Purchase and register in your company name, (cannot be an individual)
you must be a corporation, LLC, LLP and a couple of others I think.
I'm not sure that a sole proprietership can take advantage of this.
Must register as a commercial vehicle as well.
the great thing is that not only can you depreciate the full purchase price, $30,000.00 in my case. but every penny you put into this vehicle is also a busness expense,(like the purchase of accesories and gas and tires... ETC, I just order the bed mat For 189.00, I'll expense that.

Right off the bat the truck only cost me $20,000.00 assuming a 30%tax bracket

This is a very basic idea, so first thing to do is call the accountant.

Did they make a 2005?

Oh yah!, All those heavy SUV's can only depreciate 25,000 of there heafty 40-50, 000 purchase price. Because our Ridgeline is a truck, not an SUV you can depreciate the entire cost, buy two, you can depreciate up to $100,000.00 machinery.
 

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Discussion Starter #3
None mde in 2005, but certainly purchased in 2005. Thanks for the advice. I'm gonna call my accountant tomorrow.

lowrider90 said:
My 2006 weighs in at 6050, which meets the 179 depreciation limit set be the feds. To take advantage, first seek advise of a pro, but the basics are:

you must Purchase and register in your company name, (cannot be an individual)
you must be a corporation, LLC, LLP and a couple of others I think.
I'm not sure that a sole proprietership can take advantage of this.
Must register as a commercial vehicle as well.
the great thing is that not only can you depreciate the full purchase price, $30,000.00 in my case. but every penny you put into this vehicle is also a busness expense,(like the purchase of accesories and gas and tires... ETC, I just order the bed mat For 189.00, I'll expense that.

Right off the bat the truck only cost me $20,000.00 assuming a 30%tax bracket

This is a very basic idea, so first thing to do is call the accountant.

Did they make a 2005?

Oh yah!, All those heavy SUV's can only depreciate 25,000 of there heafty 40-50, 000 purchase price. Because our Ridgeline is a truck, not an SUV you can depreciate the entire cost, buy two, you can depreciate up to $100,000.00 machinery.
 

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I also write off my Ridge, but I have a "C" Corp. which allows me to have the vehicle in my name and lease it to my own corporation. I write off 3/4 of all the costs involved with the truck (including gas) since it does fit into the federal guidlines at 6050 lbs., which is one of the reasons I bought it.

My accountant figures the truck will cost me about $12,000 after I finish writing it off for the next few years.

I sold some stock options to cover the down then come to find out the stocks I sold lost half their worth so The Ridge will cost me nothing and I am actually on the plus side ;)

Ridgeline and America.... Got to love em' !
 

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Why have I always been under the impression the Ridgeline's weight was around 5000 lb? You mean it is really just over 3 tons?
 

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The gvrw is 6050, that is with the 1500 payload, includes 1100 payload, passangers and gear. 4500 is the approximate "curb weight"
 

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You can use this deduction even f you are a sole prop. - as long as you are self employed and use itemized deductions (schedule C) on your tax returns. Other Realtors in my office have done this, and I was strongly considering it as my main reason for buying a Ridge.

However! Like all good things, it isn't all roses. First of all, you are giving up the right to any depriciation expense in later years. Second, if you sell the truck somewhere down the road, you have to repay the taxes on the amount you sell the truck for.

It is an incredible deduction in the year you buy - I would have reduced my tax bill over $4800 this year. But after knowing that I would have to keep the truck for at least 7-8 years as a busines vehicle, and not get any vehicle deductions during this time period, I decided against.

I would still call your accountant.
 

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Discussion Starter #8
ozarkhawk said:
You can use this deduction even f you are a sole prop. - as long as you are self employed and use itemized deductions (schedule C) on your tax returns. Other Realtors in my office have done this, and I was strongly considering it as my main reason for buying a Ridge.

However! Like all good things, it isn't all roses. First of all, you are giving up the right to any depriciation expense in later years. Second, if you sell the truck somewhere down the road, you have to repay the taxes on the amount you sell the truck for.

It is an incredible deduction in the year you buy - I would have reduced my tax bill over $4800 this year. But after knowing that I would have to keep the truck for at least 7-8 years as a busines vehicle, and not get any vehicle deductions during this time period, I decided against.

I would still call your accountant.

I have an "S" corp. I'm awaiting a call back from my accountant. Thanks everybody.
 
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