Is the SUV Deduction Worth All the Fuss?

Tax Rules about Sports Utility Vehicles (SUV) are Confusing

In the eyes of the IRS, the SUV isn't just another car when it comes to calculating the automobile expense deduction. Every vehicle that is used primarily in business can calculate automobile expenses either by taking the Standard Mileage Rate (40.5 cents a mile for each mile driven for business - for 2005) or use the Actual Expense Method, based on the total of the actual expenses incurred.

When the Actual Expense Method is used, the amount written off during a vehicle's first year depends on how depreciation is handled. Depreciation is the percentage of an asset's value that can be written off each year over its useful life. For example, for an asset with a five-year useful life, one-fift View the rest of this article