(The standard mileage allowance for 2005 was 40.5 cents per mile for business travel between 1/1/05 and 8/31/05, and 48.5 cents per mile for business travel between 9/1/05 and 12/31/05.)

For depreciation purposes, a car is defined as a four-wheel passenger automobile designed for use on public roads and is rated at 6,000 pounds or less unloaded gross vehicle weight. The depreciation for cars is limited to $$2,960 in 2005, including any Section 179 deduction, in the first year.

In the case of a truck or van, "unloaded gross vehicle weight" is replaced with "gross vehicle weight." Trucks and vans weighing 6,000 pounds or less are passenger automobiles that are built on a truck chassis; they include minivans and SUVs. The first year depreciation, including any Section 179 deduction, is slightly higher for these types of vehicles. In year one, you can deduct up to $3,260 in 2005.

Heavy trucks and vans, including minivans and SUVs that are rated at more than 6,000 pounds gross vehicle weight, are not subject to the passenger automobile limitations and are allowed a higher depreciation limit. This means that you are allowed to depreciate 20% of the vehicle's cost in the first year. If you choose to take the Section 179 expense instead, SUV's have a $25,000 limit imposed by one of the 2004 tax bills, and the rest of the vehicles listed have a $105,000 limit in 2005($108,000 in 2006).  the vehicle has a purchase price under the limits listed in this paragraph, it is possible to expense the entire cost of the vehicle in the first year under Section 179 (i.e., deduct the whole thing).