Tesla Y for business questions- any tax gurus here?

[zimm17]

I have a one person LLC doing home inspections. I'm looking at a Tesla Y as a typical day is about 100 miles of driving and I need room for my tools and folding ladders.

As far as taxes go... I understand I can track mileage and claim 67 cents per miles for 2024. The actual cost per mile will be low being electric. However I have no idea now the other option works- taking the depreciation deduction. Also for depreciation is buying new better than used? A new long range is about $50k, but a used are in the low $30's.

Can anyone explain the pros and cons of the options?

 

[EVRider-FL]

You should talk to a tax accountant rather than taking tax advice from a public forum. I’ll mention that a business owner I know was able to write off the cost of a Model X because it exceeded a minimum weight threshold for business vehicles, though that was a few years ago.

 

[holmgang]

The IRS website is very informative and actually written in friendly language. The depreciation is just 1 part of the costs when you calculate actual-costs. The other option is to simply use the mileage-based rate deduction. You can do both and determine which is more beneficial foryou.

Topic no. 510, Business use of car | Internal Revenue Service

IRS Tax Topic on deductible car expenses such as mileage, depreciation, and recordkeeping requirements.

www.irs.gov

 

[zimm17]

The IRS website is very informative and actually written in friendly language. The depreciation is just 1 part of the costs when you calculate actual-costs. The other option is to simply use the mileage-based rate deduction. You can do both and determine which is more beneficial foryou.

Topic no. 510, Business use of car | Internal Revenue Service

IRS Tax Topic on deductible car expenses such as mileage, depreciation, and recordkeeping requirements.

www.irs.gov

Thanks, that's a good article. I didn't realize I can wait until next year's tax season and work the numbers either way to see what is most beneficial. Cost per mile will be much lower in a model Y rather than a pick up truck which is why I'm leaning towards getting one. Plus it'll match my wife's model 3.

 

[fiehlsport]

A new long range RWD is in the high 30s after tax credit + possible state incentives. No reason to go used right now. AWD is low 40s. Whatever price you see on the website, subtract at least $7500.

 

[Watts_Up]

One advice I read was when you have two cars, is to use one only for business so you don't have to report personal usage.