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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10432
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am looking to purchase a new vehicle real estate business

Customer Question

Hello ... I am looking to purchase a new vehicle for my real estate business and want to make sure I can take advantage of the section 179 deduction. It is my understanding that the vehicle must have a GVWR of 6,000 lbs or more to qualify for this deduction.
I went to a Honda dealer today and although the inside door frame listed the 2016 Honda Pilot as 5,824 lbs the manager said they can add a tow package, roof rails, and other dealer installed equipment to raise the weight level to be over 6,000 lbs. Can you
tell me if the IRS recognizes additional equipment added by the dealer as legitimate weight to raise the GVWR and if so provide some evidence by the IRS that says so so that I can keep it in my file? The dealer said they would list the additional items and
their weights on the bill of sale and would state a higher GVWR but just want to make sure I can do it!
Submitted: 1 year ago.
Category: Finance
Expert:  Anne replied 1 year ago.

Hi

I'm Anne. I've been preparing taxes for 27 years and I'll be helping you today. The IRS has identified what years/models meet the > than 6000 lbs. Please see below:

http://diminishedvalueofgeorgia.com/6000-pound-vehicles/

While this list is only complete through 2013, I do not see ANY Hondas listed. This would lead one to believe that you may NOT reach the 6000 pound limitation by adding extras to the vehicle. It must weigh 6000 pounds without the extra.

If you have any further questions, please post them here & I’ll be notified.

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Customer: replied 1 year ago.
Hi Anne ... I am not satisfied with this answer for multiple reasons. First, the list you provided is from 2013 ... I am addressing a 2016 model. Second, your response does not address the question at all. I specifically asked if additional weight can be added to a vehicle by the dealer to increase the GVWR, you did not answer the question or provide any documentation from the IRS as requested. Third, you stated that in your list from 2013 you don't see any Honda's listed however up until 2016 the Honda Pilot did meet the GVWR as does the Honda Odessey. If there is a way for you to pass my question to a tax attorney not just a tax preparer that would be appreciated. Otherwise please refund my credit card and I will verify this with someone with a better grasp of the issue.
Expert:  Anne replied 1 year ago.
I have "opted out" so that this question will go back to the open question board for another expert. I'm sorry I couldn't help you tonight, but there really is alot of talent here, and I'm confident that another expert will be able to help you
Expert:  Lane replied 1 year ago.

Hi,

...

No, the dealer is BS'ing (that's a first eh?)

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GVWR is a CAPACITY measure.

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GVWR is the total combined weight of truck, including all passengers, fuel, fluids and cargo. GVWR is constant and does not change, regardless of what you tow. It’s engineered in when the vehicle is manufactured.

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For example, if you have a 5,000-pound truck with a 6,200 pound GVWR, you can safely carry 1,200 pounds in the vehicle.

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Said differently, the GVWR is an auto's maximum safe weight that should not be exceeded.

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Said differently, again, you can think of the GVWR as a weight limit for your specific vehicle -- a weight limit set by the automaker

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All they would be doing by adding on equipment is using up more of that vehicle's GVWR.

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They're lying to you, or in my experience with dealers, simply incompetent.

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Let me know if you have questions...

...

Lane

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