FORD F250 Tax Question.....

[LouDog]

Can anyone confirm for me whether you get the personal property tax rate reduction for an F250? I've heard they are considered commercial and don't qualify.

Thanks in advance
Lou.

[FL FISHERMAN]

Here you go Loudog:

Personal Property Tax Relief (http://www.dmv.state.va.us/webdoc/general/pptr/taxpayers.asp#dqv)

Vehicles Qualifying for Tax Relief

A vehicle must meet all three of the requirements below to qualify for tax relief. The vehicle must:
Be a passenger car, pickup or panel truck weighing less than 7,501 pounds, or motorcycle; and
Be (i) owned by a natural person or (ii) leased by a natural person under a contract requiring such person to pay the tangible personal property tax; and
Be used for nonbusiness purposes.
Note: If a gross weight change is recorded with the Department of Motor Vehicles that may cause a previously unqualified vehicle to become qualified (i.e., the gross weight is changed from 10,000 to 7,500 pounds), the vehicle may be considered for qualification for the following tax year.



Passenger cars, pickup or panel trucks, and motorcycles used for nonbusiness purposes qualify for the tax relief provided under the Personal Property Tax relief Act.
"Passenger car" means every motor vehicle other than a motorcycle designed and used primarily for the transportation of no more than ten persons including the driver.
"Pickup or panel truck" means every motor vehicle designed for the transportation of property and having a registered gross weight under 7,501 pounds.
"Motorcycle" means every motor vehicle designed to travel on not more than three wheels in contact with the ground, except any vehicle included within the term "farm tractor" or "moped" as defined in Va. Code § 46.2-100.


Both "privately owned" and "leased" vehicles described below qualify for the tax reduction.
"Privately owned" vehicles are vehicles owned by natural persons.
"Leased" vehicles qualifying for the tax relief are those vehicles leased by a natural person under a contract which requires such person to pay the tangible personal property tax on the leased vehicle. (Va. Code § 58.1-3523)
Example of a qualifying leased vehicle:
A passenger car, leased by Mary Smith (a natural person), is leased under a five-year agreement. Mary uses the car for nonbusiness purposes. If Mary is required to pay the personal property tax on the car as part of her lease agreement, the car will be a qualifying vehicle and Mary will benefit from the Commonwealth's car tax relief.


Types of Vehicles Which Do Not Qualify

"Motorhomes" do not qualify for tax relief because they are designed primarily for use as living quarters for human beings, as opposed to being designed for transportation purposes. (Va. Code § 46.2-100)
Farm use vehicles do not qualify for car tax relief because, as determined by the Commissioners of the Revenue Association, "farm use" is a business use.
Vehicles held in a living trust, in general, will not qualify for tax relief because these vehicles are owned by a trust, not by a natural person. However, whether or not specific vehicles in a living trust qualify for tax relief is determined by each Commissioner of the Revenue, depending on the facts and circumstances, such as the provisions of the relevant trust, surrounding specific vehicles and trust agreements.

[LouDog]

Thanks Jason for the detailed answer. Where are you fishing these days? I saw where you and a group were at Sandbridge alot, but then the posts stopped. Thanks again

Lou

[FL FISHERMAN]

I am getting ready to ship overseas on tuesday (19th). I drove down to sandbridge to get into a few of those puppies when they were running. :D I belive my last trip will be this Saturday on Capt Monty out of Ocean City, Md. We will be going for Seabass and hopefully some fo them chomper blues will be there. Glad I could help. Tightlines!!!

[surf rat]

If you right off any portion of a vehicle for business use it is not eligable for tax relief. Like if you used it for a business vehicle. On the other hand you can do a one time deduction for up to 100% on a business vehicle that weighs over a certain amount. I think it is about 6300 lbs.If at least 50% of the mileage is business you can do a one thim 40%. 100% business use 100% deduction. That is provided your income supports it. Don't hold me to this,I am no C.P.A. I just remember some of what my accountant told me.My advice is leave it to the pros.