Telluride AWD SX GVWR?

[titi]

I am looking at buying a SX AWD (8 passenger version I hope...) for my business and take advantage of IRS's Section 179 6000-pound GVWR (Gross Vehicle Weight Ratio) one time deduction. On Kia's Telluride specs page, the EX AWD 8-passenger is rated at 5,917 lb. GVWR. The SX AWD 7-passenger shows 5,736 lb. which is a bit surprising. I would think the two second row captain chairs would weight more than a 3-pers bench seat and with the added second sunroof on the SX the GVWR should be right around 6,000 lb? Technially, the IRS goes by the GVWR label on the driver's door. I'd be curious to know what the label actually says compared to Kia's posted specs.

 

[Dandy]

I doubt it will make it. I am in the same situation. I would prefer a vehicle with a 6001+ GVWR but it seems that in this class, that isn't much more. My current Flex is 6250. The Subaru Ascent is 6000 so it is 1 pound shy of qualification. Hopefully my comment will bump this up and someone can comment with the GVWR on the door panel. I have read that if it is indeed over 6000 pounds, the vehicle classification changes within the government causing the manufactures some additional issues. If this is true it would explain why car companies that have trucks will have other types of vehicles over 6000 lb GVWR as they are already accustomed to the other hoops they must jump through.

By the way, I don't believe there will be (at least 1st year) SX with 8 passenger configuration. For some reason, many of the manufacturers in this segment are not having a 2nd row bench in their top tier options.

 

[titi]

Good thoughts. I am actually interested to learn how the Section 179 tax write off works. Do you just tell your accountant you acquired an over 6,000lbs vehicle for the company? Does the IRS require some paperwork to confirm that the vehicle is over 6,000lbs?

 

[Dandy]

Good thoughts. I am actually interested to learn how the Section 179 tax write off works. Do you just tell your accountant you acquired an over 6,000lbs vehicle for the company? Does the IRS require some paperwork to confirm that the vehicle is over 6,000lbs?

I am not an accountant. This is a source I found. Not sure how accurate it is to current tax law, but it coincides with what my account has said. My last few company vehicles my accountant had me email him a copy of the plate/sticker in to door jam that states the GVWR with the VIN and such.

Little-Known Tax Deductions on Crossover Vehicles

bradfordtaxinstitute.com

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[70camguy]

I am looking at buying a SX AWD (8 passenger version I hope...) for my business and take advantage of IRS's Section 179 6000-pound GVWR (Gross Vehicle Weight Ratio) one time deduction. On Kia's Telluride specs page, the EX AWD 8-passenger is rated at 5,917 lb. GVWR. The SX AWD 7-passenger shows 5,736 lb. which is a bit surprising. I would think the two second row captain chairs would weight more than a 3-pers bench seat and with the added second sunroof on the SX the GVWR should be right around 6,000 lb? Technially, the IRS goes by the GVWR label on the driver's door. I'd be curious to know what the label actually says compared to Kia's posted specs.

My SX-P AWD w/ Tow Package has a GVWR of 5917 Lbs on the Door... I did notice that Kia's Site says 5736... Wondering if the Tow Package makes the difference??

 

[Average Joe]

So these are going to fall short by 84 lbs to get the tax advantage? Seriously?!

 

[Wildcatt76]

My SX FWD is sadly just shy of the 6001 mark.

 

[Average Joe]

So, the SX with 2nd row bench seat should exceed the 6000 gross vehicle weight ratio ((GVWR) due to the weight of the additional passenger, correct? If so, why can’t it be ordered that way?

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[G-346787]

My SX FWD is sadly just shy of the 6001 mark.

You can still get a deduction but the amount is less as I understand. $18000.00 rather than $25000.00.

 

[G-192817]

can you get over the 6000 lbs with a dealer installed bike rack or the special/large wheels, and a real spare in the trunk? and is the sister SUV Palisade lighter or heavier?

 

[Dandy]

can you get over the 6000 lbs with a dealer installed bike rack or the special/large wheels, and a real spare in the trunk? and is the sister SUV Palisade lighter or heavier?

NO - the GVWR is based upon what is on the door sticker from the factory. There are no dealer/aftermarket components that can increase the rating. Even if you realistically could make a modification to increase the actual GVWR, that does not change what it is rated for by the factory and that is what the IRS uses for their deduction basis. IIRC, the Fed does not allow for a straight up front deduction as they will at 6001+ GVWR, but the purchase is put on a deduction schedule (I believe 5 years). With 6001+ you can take $25K up front and the balance would be on a schedule. On my 2015 Flex, because not all packages are rated at 6001+, our CPA had me send him a photo of the door card with the VIN and GVWR for verification that my vehicle indeed does qualify.

So, long story short, if the FACTORY GVWR decal is 6000 or less, it WILL NOT qualify for the $25K deduction.

 

[Teledatageek]

This is why I had to buy a 2020 Explorer (my 3rd Ex). I for sure would have purchased a Telluride had the GVWR been 6000+. Big tax credit difference...

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[Average Joe]

Those that have taken advantage of the tax deduction, did the vehicle have to be registered in the business name or can it be registered in the individuals name under a sole proprietorship to take advantage of the deduction?

 

[Dandy]

Those that have taken advantage of the tax deduction, did the vehicle have to be registered in the business name or can it be registered in the individuals name under a sole proprietorship to take advantage of the deduction?

For this clarification I would consult you accountant/CPA. My experience is based on our business filed as a corporation. In my case the vehicle must be registered under the business and then I have to document personal mileage usage and am charged back for those miles.

If I was to throw darts at a board and guess, I would guess it must be registers and owned by the business for the deduction. If you own it, I believe it is opposite of me where you document and charge the business for any business miles.

 

[SIricakes]

I doubt it will make it. I am in the same situation. I would prefer a vehicle with a 6001+ GVWR but it seems that in this class, that isn't much more. My current Flex is 6250. The Subaru Ascent is 6000 so it is 1 pound shy of qualification. Hopefully my comment will bump this up and someone can comment with the GVWR on the door panel. I have read that if it is indeed over 6000 pounds, the vehicle classification changes within the government causing the manufactures some additional issues. If this is true it would explain why car companies that have trucks will have other types of vehicles over 6000 lb GVWR as they are already accustomed to the other hoops they must jump through.

By the way, I don't believe there will be (at least 1st year) SX with 8 passenger configuration. For some reason, many of the manufacturers in this segment are not having a 2nd row bench in their top tier options.

I have an Ascent and it barely scraped by. My tax guy was surprised too. I would love the Telluride instead but cant get it due to weight.

 

[Average Joe]

Such a bummer. You would think Kia would take this into consideration with the ‘21. That said, it’s not like they are struggling to sell them. However, with the Coronavirus, that could all change soon.

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[Dandy]

I have an Ascent and it barely scraped by. My tax guy was surprised too. I would love the Telluride instead but cant get it due to weight.

Your tax guy and my CPA must read the rules different. I was informed that is must be OVER 6000 GVW, so 6001 GVW or more. From what I have seen the GVW card on the inside of the drivers door jam reads at or under 6000lbs for the Ascents.

 

[Dandy]

Such a bummer. You would think Kia would take this into consideration with the ‘21. That said, it’s not like they are struggling to sell them. However, with the Coronavirus, that could all change soon.

From some of my research, I have understood that vehicles at 6001 lbs GVWR and higher are a different vehicle classification and there are different "requirements" for these vehicles regarding government regulations. Some companies do not feel that the volume of sales would justify the additional requirements/red tape that is needed to just support that one vehicle. I don't know what the differences are but 6001 lbs GVWR puts it into a Class 2 instead of Class 1 at 6000 lbs GVWR

Commercial Truck Vehicle Classification

Commercial trucks on US highways can be classified based on their gross vehicle weight rating (GVWR). The classification is divided into 8 classes.

www.thebalancesmb.com

 

[Average Joe]

Any info on the GVWR of the ‘21 model year?

 

[Dits6634]

I also wonder if over 6k lbs upsets their cafe standards on their fleet?