Starting Your Business/Keeping Tax Records

What are Business Expenses

Car & Truck Expenses

Important Changes for 2002

Maximum clean-fuel vehicle deduction. The maximum deduction you can claim for qualified clean-fuel vehicle property placed in service in calendar year 2002 is one of the following.

1) $37,500 for a truck or van with a gross vehicle weight rating over 26,000 pounds.
2) $37,500 for a bus with a seating capacity of at least 20 adults (excluding the driver).
3) $3,750 for a truck or van with a gross vehicle weight rating over 10,000 pounds but not more than 26,000 pounds.
4) $1,500 for a vehicle not included in (1), (2),or (3).

The deduction will be phased out completely by 2005.

Qualified electric vehicle credit. The credit for a qualified electric vehicle placed in service in calendar year 2002 will be reduced by 25% after you apply the $4,000 limit. The credit will be phased out completely by 2005.

 

Important References

Publication 535 (link to publication 535)