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9 Lewis & Clark L. Rev. 669 (2005)
The SUV Tax Loophole: Today's Quintessential Suburban Passenger Vehicle Becomes Small Businesses' Quintessential Tax Break

handle is hein.journals/lewclr9 and id is 689 raw text is: THE SUV TAX LOOPHOLE: TODAY'S QUINTESSENTIAL SUBURBAN PASSENGER VEHICLE BECOMES SMALL BUSINESSES' QUINTESSENTIAL TAX BREAK by Carrie M. Dupic Concededly, whether any given tax provision of the Internal Revenue Code (the Code ) is a loophole or an opportunity is a matter of perspective. Of late, section 280F(d)(5) of the Code has been both criti- cized and praised for the dual tax-evading and tax-saving qualities it possesses. Known as the SUV tax loophole, this Code section is the mechanism that sets the wheels of tax incentives turning, producing great tax write-offs for those small businesses and self-employed individuals who buy heavy sport utility vehicles for business use. This Comment ex- plains the development of the SUV tax loophole, and demonstrates, by way of illustrative hypotheticals, its persuasive influence on small busi- nesses' vehicle choices. Also discussed are legislators 'failed attempts to close the loophole at both the state and federal levels. Finally, this Comment argues for and suggests ways for Congress to close the SUV tax loophole at its source in section 280F(d)(5). 1. IN TR O D U C TIO N ..................................................................................... 670 II. THE SUV TAX LOOPHOLE PERSUADES SMALL BUSINESSES TO BUY HEAVY SUVS: AN ILLUSTRATIVE HYPOTHETICAL ...... 673 A. Scenario 1: Purchasing a Luxury Sedan for Business Use ................ 673 B. Scenario 2: Purchasing a Sport Utility Vehicle for Business Use ..... 676 III. SECTION 280F AND THE UNINTENDED SUV TAX LOOPHOLE... .677 A. The Original Purpose of Section 280F .............................................. 678 B. The Advent of the SUV as a Trendy Luxury Vehicle Opens Up the SU V Tax Loophole ............................................................................. 679 C. The Fuss About SUVs: Environmental Concerns .............................. 680 1. Scenario 1: Choosing Between a Heavy SUV and a Com- paratively Priced Hybrid Passenger Automobile ........................ 682 2. Scenario 2: Choosing Between a Heavy SUV and the Most Expensive Hybrid Passenger Automobile on the Market ............ 682 J.D. 2005, Lewis & Clark Law School; B.S.B.A., summa cum laude, 2002, Washington University in St. Louis. The author thanks Professor Jack Bogdanski for his comments and assistance with this Comment. She also extends special thanks to her family and friends for their endless encouragement, prayers, and support. Additionally, she thanks Neah Huynh for his love, patience, and understanding through it all. Finally, the author lifts up thanksgiving to God, for His manifold blessings.

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