Hummer Tax Question?

[guyzilla]

I read where people are trading in their H2's for new ones and not having to pay much by way of the current tax writeoffs. I bought a new '03 H2 2 years ago thru my company using the tax writeoff (believe it was up to a $100k depreciation writeoff for the year) and would love to do a trade in for a new one with xm,etc., if it were feasible. Anyone able to tell me basically if this is possible? Aren't the new laws restricting the writeoff to only $20,000 toward the vehicle? Thanks for any help.

[guyzilla]

I read where people are trading in their H2's for new ones and not having to pay much by way of the current tax writeoffs. I bought a new '03 H2 2 years ago thru my company using the tax writeoff (believe it was up to a $100k depreciation writeoff for the year) and would love to do a trade in for a new one with xm,etc., if it were feasible. Anyone able to tell me basically if this is possible? Aren't the new laws restricting the writeoff to only $20,000 toward the vehicle? Thanks for any help.

[PARAGON]

Check with your accountant. When you sell the truck you might have to contend with recapture rules which might offset the initial deduction. And yes the deduction is reduced from $100K, but I can't remember what the exact number is but I think it is more than $20K.

[Hart1]

25k and then some added $$$ to bring it to $50K

(retaining both the 50-percent "bonus" deduction and the five-year depreciation schedule.)

[NJ H2]

My accountant told me NOT to trade the H2 in. He claimed that trading it in would offset the initial deduction. He said if you sell it on your own then then it won't.
I am not 100% sure he is correct but it's worth checking in to.

[usetosellhummer]

now that the tax law has changed it is not worth it. If you had done it before the new law it would still work to a point.

[Screeper]

I too was told that I had to keep my 04 H2 for five years or elso risk reducing the depreciation. However if the duramax H2 were to come out, then dollars be damned