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The X5 is just heavy enough to qualify for a 179 deduction, which permits a deduction of up to $25k in the initial year of use for 100% business use. If business use is less than 100% but more than 49%, deduction is prorated. Under 50% business use does not qualify for 179.
 

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The X5 is just heavy enough to qualify for a 179 deduction, which permits a deduction of up to $25k in the initial year of use for 100% business use. If business use is less than 100% but more than 49%, deduction is prorated. Under 50% business use does not qualify for 179.
Unless they changed it recently, I've read that the SUV/truck has to be over 6000 lbs. And, the X5 is a tad under that weight requirement at around 5400 lbs. But, if you're incorporated, there are legal ways to still deduct the purchase. You'll need to speak to your CPA about that.
 

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2021 X5 45e
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Discussion Starter #4
I've seen it more than 6000 and less than. Must one have certain pkgs. to gain the weight or what? Can't seem to find the exact gvwr. Thanks for the info so far.
 

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I've seen it more than 6000 and less than. Must one have certain pkgs. to gain the weight or what? Can't seem to find the exact gvwr. Thanks for the info so far.
LOL!!! You can't add packages to the SUV or truck so it can weigh the minimum 6000 lb! If that was the case, then anyone can buy any car and add some weightlifting weights into the trunk.

If you want to be sure, ASK YOUR CPA! This applies for businesses. If you have a business, you certainly should have an accountant.
 

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Discussion Starter #6
Thanks for your input, but I've already talked to our CPA. Not too confident in his knowledge about this, unfortunately. Also, as far as packages, yes, it does make a difference. If one has the sport pkg., the car weighs more. And, no, I'm not talking about adding weights. Serious advice only, please.
 

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Discussion Starter #7
I just found the stats on the '10 X5. It does qualify. The X5d has a gvwr of 6,294 lbs. w/o 3rd row. With 3rd row it's 6,614. So that's good news!
 

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Unless they changed it recently, I've read that the SUV/truck has to be over 6000 lbs. And, the X5 is a tad under that weight requirement at around 5400 lbs. But, if you're incorporated, there are legal ways to still deduct the purchase. You'll need to speak to your CPA about that.
I am not a tax expert, but I believe the qualification is based on GVWR, not the actual weight of the vehicle.
 

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That is correct. The vehicle has to have a GVWR of 6000lbs. The X5 has a GVWR of 6005, I believe. There are many car companies that did this to play on the tax advantages for business owners. Several years ago you could depreciate the entire cost of the vehicle in the 1st year! That is a huge discount on the car. Most depreciation schedules on 'business' vehicles are over 5 years, so, if you do not keep the vehicle the entire 5 years then you owe back a portion of the money. My partners and I all have vehicles 'run' through the office and the biggest discount are the ones with a GVWR of 6000lbs or more! Hope this helps
 

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That is correct. The vehicle has to have a GVWR of 6000lbs. The X5 has a GVWR of 6005, I believe.
Yup, I just checked the owners manual and the GVWR varies, depending upon model and with or without third seat, from a low of 6,008 for a 3.0 gasoline without 3rd row seats, to a high of 6,614 for the Diesel with 3rd row seats, i.e., they should all qualify.
 

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Discussion Starter #11
Thanks for the input. Yes, above I listed the gvwr for the diesels only.
 

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Speak to your accountant about this issue. According to my CPA, if you write off the SUV as a business/corporate car, then the car has to be insured under the corporate name. And, insurance companies often charge higher premiums for corporate cars.

As stated, there are other ways to deduct the car purchase for business. But, you'll have to talk to your CPA about it. Most CPA's will suggest going another route because it's easier and comes out the same in the end.
 

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my 2008 4.8 qualified in 2007. i don't believe the 3.0 qualified that year. you should be able to access a list of qualified vehicles from your CPA.
 
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