Quote:
Originally Posted by Matt L
The owner wants a SUV, and gets a healthy tax break for buying a more expensive one.
Who would buy a 40K car if you can buy a 60K SUV and get 25K off?
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That only works if it is a direct tax CREDIT. If it is a deduction, then it depends on your tax bracket how much you actually save in taxes. So you spend an extra 20k to get a 25k deduction. Assume 30% thats 6-7k of tax savings. Not very smart.