Lawmakers are looking to trim tax break for small business owners to $25,000 from $100,000. WASHINGTON (Reuters) - Congressional negotiators closed a controversial tax loophole on Wednesday that allowed small business owners to write-off the full cost of the biggest and most expensive sport utility vehicles. The auto deduction is part of a long-standing tax provision covering depreciation of business expenses. It was originally intended for farmers and construction workers who need heavy duty vehicles to haul goods and materials. Lawmakers expanded the popular write-off from $25,000 to $100,000 last year and lifted depreciation schedules to enable taxpayers to take the deduction all at once. This created a huge incentive for anyone running their own business to buy big SUVs, which have skyrocketed in popularity. Tax fairness, environmental and consumer groups have complained that doctors, lawyers, accountants and other white collar professionals that run their own businesses have taken advantage of the loophole to buy the flashiest sport utilities for personal use. These luxury models can cost well over $50,000. Read entire article by clicking this link.
Sorry it took so long for me to respond, I was out getting my H2 before the loophole was fixed. Thanks for the heads-up, Jeff! I\'m kidding, folks!
It's better than before but, still, a $ 25000 tax deduction is more than the (base) price of rhe Prius for gas guzzling dangerous monstrosities whereas for friendly efficent Prius we only get a paltry $ 2000. At the very least, the Prius should be exempt from sales tax and registration. ( I know some states have a tax exemption).The insurance companies should show they are good corporate citizens by giving a 10% discount as well.
although the tax break for the Prius has been increased (well sort of...actually just put back to where it was) i think that the fact that the amount is a mere pittence in comparison to the deduction for the gas guzzling SUV's or whatever, is a very accurate reflection of the stance by big business and the current administration. it really must have hurt bush and his oil buddies to increase the break for Prius owners...
