Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

SUV Tax Break For Accountants and Realtors Going South--Hopefully

Posted by: David Kiley on July 2, 2007

I recall a few years ago getting a phone call from a Realtor friend of mine. She said she was going to buy an SUV to take advantage of the tax loophole that allowed her to write off her car as long as it weighed over 6,000 pounds. She asked me if she should get a Tahoe or a Navigator. I said the first thing you might want to get is a conscience.

Today the loophole gives small business operators, whether they are farmers, contractors or Realtors, a $25,000 tax deduction if the car they buy weighs over 6,000 pounds. That scam, though, may be mercifully going away. Congresspeople, led by Oregon’s Earl Blumenauer, are trying to pass a bill that’s expected to be voted on by the House of Reps next month.

Under the new proposal, provisions for legit business use will remain, such as farm vehicles, vans, flatbed trucks and school buses. The Realtors, Accountants and Beauty Parlor owners who have been using the loophole to buy gas guzzling SUVs they don’t need instead of passenger cars will be out of luck…finally!

Big surprise here—the carmakers and auto dealer trade groups are strongly opposed to any changes, regarding the new proposal as a tax increase for small business owners.

Reader Comments

Brendan Moore

July 3, 2007 2:05 AM

That particular loophole was loathsome, and the results were almost lurid - people using 6000 lb. SUVs and crew-cab pickups as commuter vehicles and errand cars. It can't go away fast enough.

B Moore -


July 4, 2007 11:02 AM

David, I'm completely with you in hoping that people won't buy SUVs. But when you say "The first thing you might want to get is a conscience" to someone who doesn't see a problem with buying an SUV, you might make them MORE determined to buy one, not less, as a reaction to being criticized. Strategically, it's not a good move to make that kind of comment.

Tom Renda

July 5, 2007 2:09 PM



July 10, 2007 10:32 PM

Can't happen fast enough.

"That particular loophole was loathsome, and the results were almost lurid - people using 6000 lb. SUVs and crew-cab pickups as commuter vehicles and errand cars. It can't go away fast enough."


Ben Levy

July 12, 2007 4:30 PM

To be fair, they should add a credit for cars under 3,000lbs. I could finally own a Lotus!

Zip Drugs Legal Discount Online Pharmacy

July 15, 2007 11:08 PM

What about a beauty parlor owner that does housecalls and needs an SUV to carry her equipment around?


July 17, 2007 11:27 AM

Finally a loop hole that benefits the common folk. Stick it to them while you can.


July 18, 2007 10:59 PM

Your beauty parlor owner has lots of fine cars to choose from under 6000 points. Tell her to look into a Toyota Highlander hybrid: 35 mpg and does not tear up local roads and thus raise regressive local taxes.

Sherman Lin

July 23, 2007 4:55 AM

In the interest of lowering our dependence on foreign oil why not offer the deduction only on vehicles which get a minimum of 30 mpg?


August 9, 2007 9:43 AM

I thought we lived in America! We have a right to drive whatever we want!


September 11, 2007 8:02 PM

I'm still going to buy a new BMW X5 so I can take a max deduction this year. A Realtors work is never done. According to my accountant I'll even be lowering myself into a lower tax bracket by doing so and save myself over 35k Whooopy.


September 18, 2007 10:48 PM

all you tree huggers, try showing a house in the hills or in 2ft of snow driving a passenger car or having to lug around 5 or 6 people to a showing in you little 9volt cars


November 13, 2007 10:44 AM

Let's hope people die for buying an SUV to make you feel better about your opinion???

Tom Renda
July 5, 2007 02:09 PM


April 9, 2008 1:42 AM

Yes, I bought 6000 lb SUV to get tax credit.
No, I don't like driving big cars. I haven't driven big cars in Europe either but consider what other people are driving. Just look around you and you will see trucks and SUVs anywhere.

....AND YES, I will buy a big SUV again....I just got accident driving my 18 month daughter to daycare and totaled my SUV. Fortunately I was in THE BIG SUV and I don't mind paying few hundreds dollar more for gas if it will save my life. Imagine how much chance you have to die in the small Honda Civic.

God bless


September 29, 2008 7:31 AM

The only risk to me in my Civic is from being plowed into by BIG SUV owners.. but I'm a small target and a good driver, so I think I'll be alright. It's too common that the BIG SUV owners who tell me about their horrible accident were trying to make a left turn across several lanes of traffic..

And this discussion isn't over "American's right to drive what they want." It's about whether or not tax laws should reward people for driving over sized, gas guzzling vehicles they don't need.

Kase Ellers

October 10, 2008 3:26 PM

I think the fact people say SUV's are safe is a complete myth ... it all depends on the brand of automobile you get.

Bmw's, Audi's, Mercedes, VW's, Volvo's are all safe cars. Ive been in two accidents in my life. One I was rear ended in an accord ... my car was totally and I have permanent back injuries (I was hit by an SUV)
My second accident I was in a Volvo S60 ... I walked away from that accident (lady ran a light and hit my car) not even a scratch. The lady who hit me on the other hand had to be pulled from her Oldsmobile.


December 31, 2008 8:19 PM

I hope more people keep buying the little hybrids and whatnot, that way if I ever have a wreck in my F-250 turbo diesel it'll barely scratch my bumper.


February 9, 2009 1:18 PM

Sorry Brendan, but Taxes can't go away fast enough! So stick it! Thanks

Post a comment



Want the straight scoop on the auto industry? Our man in Detroit David Welch, brings keen observations and provocative perspective on the auto business.

BW Mall - Sponsored Links

Buy a link now!