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» From: Pittsfield, MA Dear TaxMama: My business bought a new mini-van in 2001 for $38,000. How much of this can I deduct on my 2001 tax return? Thanks. Lance Dear Lance, It depends on whether your van weighs more or less than 6,000 pounds. If it's over 6,000, then you can depreciate it over 5 years. Your deduction would be the number of months the business owned it in 2001, divided by 60 months. Then, you'll need to multiply that by the business usage percentage (if there was any personal use .... you can't deduct that percentage). Or just the MACRS tables. If it falls under the 'luxury' vehicle rules, you can deduct up $3060 if you used the van 100% for business. Otherwise .... use the business percentage of $3060. The rules and tables are available on the IRS Site here Don't drive yourself crazy. Good luck. Best wishes, Eva Rosenberg Your TaxMama  |
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