What is the proper way to claim a Range Rover on taxes for depreciation & do they pay for themselves?

I bought a Range Rover brand new. Do I report the full purchase price and depreciate a certain amount yearly?


Also I heard that by doing so the Range Rover pays for itself...Does that mean that I get a refund from irs for the depreciation each year?|||Did you buy it for a business you own, for business driving you do, or is it for your personal use? If for personal use, you don't do anything on your taxes with it. If it's for driving for business, yes you can claim either a flat rate for mileage of 58.5 cents per business mile, which would include depreciation, or claim actual expenses prorated for the amount of your driving that is business miles,





In any case, no they don't pay for themselves. Sounds like something a dishonest salesman would tell you. Even if it's used only for business, the depreciation means that much of your income isn't taxed, so your tax savings is the depreciation times your tax bracket. You don't say just what model you bought, or what your income is. But if you paid say $90,000 for it, and are in a 25% bracket, tax savings over the years could be as much as $22,500 from the depreciation - the other $67,500 would still come out of your pocket.|||Do you run your own business, and is the Range Rover the property of the business, and is it being driven in the course of conducting company business? Because if you're talking about your personal vehicle, you're out of luck. You don't get to deduct depreciation on personally owned automobiles.





If you are talking about deducting depreciation on a business vehicle, you'd need to submit a form 4562 with your tax return. Here's the info from the IRS:





http://www.irs.gov/pub/irs-pdf/i4562fy.p鈥?/a>|||No and yes. If you own a small business and are claiming the Rover as a business expense, then you get full depreciation value credited back towards your business expenses. Since new Rovers take a large hit on depreciation on the first few years, that ammount can be quite substantial. If you do not own a small business, then no.|||I don't think that special luxury car/SUV business deduction exists any more.





There is a special 179 depreciation for vehicles used over 50% for business. But as near as I can tell, an SUV purchased in 2008 would typically qualify as a passenger vehicle which would make 179 deduction a maximum of $2960 times percentage of business use on 2008 taxes. Deduction is greater for trucks that have specific features.





Of course if you depreciate a business vehicle, you also deduct the business percentage of actual operating expenses elsewhere (fuel/maint).





None of that means anything if you take the standard business mileage allowance.|||Provided it is for business use there is some information on this small business owner program/deduction on the Land Rover website:





http://www.landroverusa.com/us/en/Dealer鈥?/a>





You could probably contact the retailer as well as I'm sure they'd be more than willing to help in order to make a sale.