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Discussion in 'Model X' started by MBTesLosAngeles, Feb 12, 2016.
Does it make a difference?
I am to take advantage of the "Hummer Tax" Section 179
And you can still claim the state and federal tax incentives?
I'm in Florida so no state incentive. My accountant thinks I can get both federal and the section 179.
Yes. Section 179. Have your accountant (if you have one) walk you through it.
Does that apply to the whole U.S.?
Yes. It is the Federal Tax code.
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.
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
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.
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.
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