Announcement

SUV deduction

You can deduct a large portion of the cost of an SUV used for business and purchased in 2006 if its gross vehicle weight exceeds 6,000 lbs. The key here is that the vehicle must be used more than 50% for business purposes, not including commuting.

The amount of the deduction is calculated as the purchase price of the vehicle (including sales tax) multiplied by the business use percentage. The deduction is then limited to $25,000.