Tax Benefits in The United States
Under the United States income tax code, the cost of vehicles over 6,000 pounds (2,700 kg) can be deducted from specific forms of income. This deduction was enacted decades ago to assist self-employed people in purchasing a vehicle for business use. The weight minimum was intended to limit the deduction to commercial-type trucks. For many years, the deduction remained below the average cost of a new vehicle, since large trucks were relatively inexpensive. Since it is a reduction in taxable income, the actual value of this deduction averages 30% of the price of the vehicle in question.
The increasing popularity of these commercial vehicles in the last decade, however, pushed their average price to nearly double the average passenger car cost. In response, the 2002 Tax Act increased this "Section 179 depreciation deduction" to US$75,000, and it rose again to US$102,000 for the 2004 tax year. This is more than three times the current average cost of a passenger car in the United States and covers a large number of luxury models, including the Hummer H2. In late 2006, the deduction was again reduced to US$25,000 for vehicles with GVWR between 6,000 lb (2,700 kg) and 14,000 lb (6,400 kg).
Base price MSRP in 2008 for the H2 is $53,286.
Read more about this topic: Hummer H2
Famous quotes containing the words united states, tax, benefits, united and/or states:
“In the United States, though power corrupts, the expectation of power paralyzes.”
—John Kenneth Galbraith (b. 1908)
“I have no doubt that it was a principle they fought for, as much as our ancestors, and not to avoid a three-penny tax on their tea; and the results of this battle will be as important and memorable to those whom it concerns as those of the battle of Bunker Hill, at least.”
—Henry David Thoreau (1817–1862)
“One of your biggest jobs as a parent of multiples is no bigger than simply talking to your children individually and requiring that they respond to you individually as well. The benefits of this kind of communication can be enormous, in terms of the relationship you develop with each child, in terms of their language development, and eventually in terms of their sense of individuality, too.”
—Pamela Patrick Novotny (20th century)
“It was evident that, both on account of the feudal system and the aristocratic government, a private man was not worth so much in Canada as in the United States; and, if your wealth in any measure consists in manliness, in originality and independence, you had better stay here. How could a peaceable, freethinking man live neighbor to the Forty-ninth Regiment? A New-Englander would naturally be a bad citizen, probably a rebel, there,—certainly if he were already a rebel at home.”
—Henry David Thoreau (1817–1862)
“I make this direct statement to the American people that there is far less chance of the United States getting into war, if we do all we can now to support the nations defending themselves against attack by the Axis than if we acquiesce in their defeat, submit tamely to an Axis victory, and wait our turn to be the object of attack in another war later on.”
—Franklin D. Roosevelt (1882–1945)