Final answer:
The § 179 deduction limit typically impacts the deductibility of costs for certain vehicles; however, this limit does not apply to vehicles modified for non-personal use, such as a taxi. If a sports utility vehicle with a GVW of 7,000 pounds is used as a taxi, the § 179 deduction limit does not apply, making the statement True. The correct answer is option1: True.
Step-by-step explanation:
The question relates to the § 179 deduction limit for vehicles, which is a part of the tax code that allows businesses to deduct the cost of certain types of property as an expense when the property is placed in service. Typically, there is a limit on the deduction amount for passenger vehicles, including some sports utility vehicles (SUVs), particularly those with a Gross Vehicle Weight (GVW) above 6,000 pounds but no more than 14,000 pounds.
However, the § 179 deduction limit does not apply to vehicles that are specifically modified for non-personal use, such as taxis, ambulances, or hearses. As such, if a sports utility vehicle with a GVW of 7,000 pounds is used as a taxi, it will not be subjected to the typical § 179 deduction limitations that apply to SUVs. Therefore, the statement that the § 179 limit for a sports utility vehicle with a GVW of 7,000 pounds will not apply if the vehicle is used as a taxi is True. Therefore the correct answer is option1: True.