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<title>Professional Vehicles Depreciation</title>
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<td width="100%" bgcolor="#000080" colspan="2" align="center"><h2><font color="#FFFFFF">Professional
Vehicles Depreciation</font></h2>
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<td width="100%" bgcolor="#FFFFFF" align="center" colspan="2"><p align="left"><small>Funeral
Directors and Livery Operators stand to benefit from several provisions of the recent tax
code modification. Of particular interest is the area of funeral vehicles.
Unfortunately, the rules set forth in IRS Publication 946 are not clear and leave room for
interpretation which can be dangerous. The IRS is specifically granting favorable
treatment to hearses, but treatment of service vans is questionable and limousines have
been, to this point, unchanged. Based on the <a href="http://www.fscunet.org/">Funeral
Service Credit Union</a>'s review of the regulations, here is the data on depreciation of
professional vehicles:</small></td>
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<td width="15" bgcolor="#000080" align="center"><h4><a href="homepage.htm">HEARSES</a><font color="#FFFFFF">:</font></h4>
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<td width="85%" bgcolor="#FFFFFF"><p align="left"><small>Like other vehicles, hearses are
considered five-year property for depreciation purposes. Because these vehicles are
specifically excluded from the category of "listed property", they are not
subject to the limit on the amount that can be written off as an expense in a particular
year. Therefore, the IRS will allow an immediate deduction of up to a $100,000. on a
hearse under IRC Section 179. This means that if you purchase a hearse for, say
$80,000., you can write off $80,000. to expense on your business tax return in the year of
acquisition. Depending on circumstances, the Funeral Director or Livery Operator may
prefer the other available depreciation methods. Remember that the Section 179
deduction cannot reduce your net income in a particular year to less than $0.00.</small></td>
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<td width="100%" bgcolor="#000080" align="center" colspan="2"><h4><font color="#FFFFFF">Buy
From</font> <a href="homepage.htm">Baines Professional Vehicles</a> <font color="#FFFFFF">Finance From</font> <a href="http://www.fscunet.org/">Funeral Service
Credit Union</a></h4>
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<td width="15" bgcolor="#000080" align="center"><h4><a href="homepage.htm">LIMOUSINES</a><font color="#FFFFFF">:</font></h4>
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<td width="85%" bgcolor="#FFFFFF"><small>Limousines are currently classified as
"listed property". Though Section 179 applies to them, the amount that can
be written of in the first year is limited. the good news is that, whereas before,
the maximum Section 179 deduction for these vehicles was $3,060., the cap has been raised,
and the IRS now allows "bonus depreciation", an additional deduction calculated
at 50% of the basis in the automobile. The initial maximum deduction, plus
"bonus depreciation", is capped at $10,170. for vehicles purchased before
January 1, 2005. In other words, if you purchase a limousine for, say, $60,000., you
can write off up to $10,170. of its purchase price in the year of acquisition. The
remaining basis in the vehicle can be expensed in subsequent years using the standard tax
rules for 5-year property.</small></td>
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<td width="100%" bgcolor="#000080" align="center" colspan="2"><h4><font color="#FFFFFF">Buy
From</font> <a href="homepage.htm">Baines Professional Vehicles</a> <font color="#FFFFFF">Finance From</font> <a href="http://www.fscunet.org/">Funeral Service
Credit Union</a></h4>
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<td width="100%" bgcolor="#000080" align="center" colspan="2"><a href="homepage.htm"><img src="Masterpiece_small.JPG" alt="Masterpiece_small.JPG (34305 bytes)" WIDTH="100" HEIGHT="75"><img src="victoria_small.jpg" alt="victoria_small.jpg (29556 bytes)" WIDTH="100" HEIGHT="75"><img src="medalist_small.jpg" alt="medalist_small.jpg (30348 bytes)" WIDTH="100" HEIGHT="75"><img src="Statesman_small.jpg" alt="Statesman_small.jpg (30365 bytes)" WIDTH="100" HEIGHT="75"></a></td>
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<td width="100%" bgcolor="#FFFFFF" align="center" colspan="2"><small>Please contact your
accountant for more details. Baines Professional Vehicles Inc takes no
responsibility for any incorrent or misinformation provided. Please contact your
accountant for more details.</small></td>
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<td width="100%" bgcolor="#000080" align="center" colspan="2"><h5><font color="#FFFFFF">Information
Provided by </font><a href="http://www.fscunet.org/"><img src="fscu.gif" alt="fscu.gif (801 bytes)" WIDTH="75" HEIGHT="40"></a></h5>
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