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Anyone buying their Model X through a company?

Discussion in 'Model X' started by MBTesLosAngeles, Feb 12, 2016.

  1. MBTesLosAngeles

    Joined:
    Feb 5, 2016
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    Location:
    LA
    Does it make a difference?
     
  2. Aquaexceed

    Aquaexceed Member

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    Location:
    Fort Lauderdale, FL
    I am to take advantage of the "Hummer Tax" Section 179
     
  3. MBTesLosAngeles

    Joined:
    Feb 5, 2016
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    Location:
    LA
    And you can still claim the state and federal tax incentives?

     
  4. Aquaexceed

    Aquaexceed Member

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    Feb 3, 2016
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    Location:
    Fort Lauderdale, FL
    I'm in Florida so no state incentive. My accountant thinks I can get both federal and the section 179.
     
  5. Joel

    Joel Active Member

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    Mar 24, 2011
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    Location:
    Michigan
    Yes. Section 179. Have your accountant (if you have one) walk you through it.
     
  6. CTemp222

    CTemp222 Member

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    Location:
    Chicago
    Does that apply to the whole U.S.?
     
  7. Joel

    Joel Active Member

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    Yes. It is the Federal Tax code.
     
  8. ernies

    ernies Member

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    Mar 16, 2015
    Messages:
    106
    Location:
    Marysville WA
    I am buying mine through my company. It makes a difference with insurance coverage. I have the advantage of a $3 million policy with umbrella. Will keep logs on how I use it in business. Initially writing off 60%, but am rethinking that as almost everywhere I go I have existing or potential clients. The underwriter at the bank made a comment about the X looking pretty "sporty" for a business vehicle. I suppose Donald Trump's airplane would look sporty also.

    Remember that contemporaneously kept logs are hard to quibble with. Made up ex post facto logs look and smell like they are too fresh.
     
  9. jsollender

    jsollender Member

    Joined:
    Jan 11, 2016
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    Location:
    Denver, CO
    I too plan on taking the 179 deduction. Still not sure if I can claim 100% business use, unless I imply that some of my consulting work is done from home computer/library and then I drive to office to see patients. Also not clear if the 7,500 federal deduction and (YEAH) 6,000 Colorado reduction is separate from the potential 25,000 179 deduction/credit. If all apply and don't mutually exclude each other, a combined 38,500 tax deduction is soooo no brainer that I could not resist. I just need to ensure my 90D is delivered before Tesla hits total sale number 200,000, when the tax credits vanish, unless Elon finds more free federal $$$ for his baby TSLA
     
  10. Darryl

    Darryl ModelXTracker.com Co-Adm

    Joined:
    Jul 27, 2015
    Messages:
    505
    Just so you own another vehicle you can say you use for personal use. Wouldn't you have track odometer mileage as documentation. If not it would be pretty hard to defend if you are audited. what happens if you sell it in three years and you have fully depreciated it. Wouldn't you have to pay the sales amount as income. Income is not necessarily the right term but you know what I mean.
     
  11. Uncle Paul

    Uncle Paul Member

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    Nov 1, 2013
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    Location:
    San Diego
    Only $25,000 of the purchase price is deductible for section 179. If you sell your Model X for $25,000 less than you pay for it, there is no recapture of the depreciated amount. Nice little bonus.
     
  12. pvogel

    pvogel Member

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    Jun 23, 2015
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    Location:
    Santa Clara, CA
    Important also for people to understand the difference between tax credit (7500 federal) and tax deduction (section 179) the former is an actual, full 7500 less tax money paid by the eligible tax payer. The latter reduces your taxable income by up to 25000, so if your marginal tax rate is 30% you save an additional 7500, NOT 25000
     

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