The SUV tax loophole


Large SUVs get classified for tax purposes as light trucks and thus can be depreciated much faster than most vehicles.

The result? Three-ton behemoths are usually mostly deductible in the first year, while more fuel-efficient cars are limited to only a small portion of the cost. It generally takes about six years to fully recoup the cost of a business-use fuel-efficient.

And now we see the real source of the “demand” for large SUVs: a tax loophole. Quite frankly, that’s insane.

The SUV tax loophole needs to be closed. Now.

One Response to The SUV tax loophole

  1. Ten Bears Sun, May 31, 2009 at 1:35 pm #

    Old news, too me at least. I’m surprised it isn’t readily knowledgeable. It was one of the first of Bush’s loopholes (I think, it may have been there earlier) and all the contractor nuts around here (Housing Hurricane – Forbes, April) were buying up faster than the two lots now going out of business could bring them in.