Depreciation of Vehicle Depends on Gross Vehicle Weight (GVW)

Curb Weight is the actual weight of the truck without any passengers or cargo in it. It’s the base weight that is used in subtraction to calculate the total weight of the vehicle with passengers and cargo.

Gross Vehicle Weight is the total weight of the loaded vehicle. This includes the vehicle itself and the cargo that is loaded within that vehicle.

Gross Vehicle Weight (GVW) Ratings are the ratings that are calculated by the manufacturers as to be the amount of weight that the vehicle will be when the vehicle itself is weighed filled with gasoline and loaded according to manufacturer’s specifications. 

Depreciation of a vehicle depends on the Gross Vehicle Weight.   

For 2008, Cars with a GVW (unloaded) up to 6,000 lbs. have a maximum depreciation when basis exceeds (with bonus) $18,266. 

For 2008, a Truck or Van (Including SUV’s and Minivans on a  Trust Chassis) GVW (loaded) up to 6,000 lbs. have a maximum depreciation when basis exceeds (with bonus) $18,600. 

For 2008, Cars, Trucks or Vans (Including SUVs and Minivans) GVW over 6,000 lbs. but not over 14,000 lbs. have no depreciation limit (up to the cost).  The Maximum §179 (upfront) depreciation is $25,000. 

Note: All of the above maximums have to be multiplied by the business use percentage to compute the deprecation deduction

This entry was posted on 4. February 2009 at 14:59 and is filed under Income Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.