Hello all,
First..this post is not relevent to many but for those of us who are self employeed...paying tons in taxes...this is a great question;
I love my old paid for 94 LS400. I got everything working perfectly...has about $14k invested all together. Just got back from a 400 mile drive and couldn't be happier.
We need to get another car this fall. From the looks of things we are going to owe big money in taxes this year. (nice problem, I know). There is a tax law that allows self employeed business owners to write off 100% of a vehicle that weights over 6000lbs off in the first year. So, if you are in the 40% tax bracket and you buy a new Porsche TT SUV....you actually reduce the taxes you owe by.....$40,000.
I friggen hate SUVs. But, even more I HATE depreciation. I can buy a sweet 98-00 LS for $20,000...pay cash. But, doing so would force me to pay more in taxes. If we buy a SUV I will have to make a payment....and pay interest....and deal with the depreciation....not to mention own a SUV. VS with the paid off LS....its paid off and I already know that they are the worlds best cars. I am not smart enough to figure out why I shouldn't buy the SUV and save the money in taxes....anyone? This is a real issue.
Thanks!