SageBrush
REJECT Fascism
Oh ... and while I am playing CPA on the internet, I'll add that one should also consider the difference in sales tax/ property taxes as applicable.
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Business owners in US can buy a new Model X for less than a Model 3
- Thread starter MelaniainLA
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- Model 3 Model X section 179
SageBrush
REJECT Fascism
I'm not sure what you are asking ...
In Colorado I pay state and county taxes one time when I buy a new car, and then property tax ("ownership tax") each year for the next 9 years on a car. If I remember correctly, CA e.g. has state and local (and perhaps city) taxes on a new car purchase.
So pick the taxes that apply to you and pay, typically by the msrp of the car. The higher the msrp, the higher the taxes.
As a contrived example, say your combined sales taxe(s) are 10%.
If the Model X msrp is 120k, then $12k in sales taxes.
If the Model 3 msrp is 60k, then $6k in sales taxes.
The Model X cost you $6k more is sales taxes.
Say the depreciation is worth 30% based on your marginal rates,
Then the increased sales tax offsets $6000/0.3 = $20,000 of the difference in car price that would otherwise benefit from the accelerated depreciation schedule.
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cpa
Active Member
Not sure where you get seven years, GFE. The statutes of limitations for federal income taxes are as follows, all measured from the statutory due date of the returns (April 15) or the date actually filed if after April 15:
The general statute of limitations is three years.
The substantial underreporting of income or overreporting of expense is six years. This is defined to be 20% or more of your income is underreported or 20% of your deductions are overreported.
There is no statute of limitations if fraud or tax evasion is considered. Sorta like first-degree murder.
An amended return any time during the three-year period adds one more calendar year to the SOL.
Moreover, any item that appears on your tax return is subject to verification by audit. Accordingly, if you report something on your tax return that has a source from an earlier tax year, the examiner is well within his rights to look at that earlier year's return to audit that particular item.
Thanks. Just confused about the property tax part since we do not pay that here...
We actually sort of do. We pay a higher registration fee based on the value of the car. In other states the registration fee is fixed, say $20 and they hit you with the property tax.
No matter how you slice it, the government is going to tax you for it.
We actually sort of do. We pay a higher registration fee based on the value of the car. In other states the registration fee is fixed, say $20 and they hit you with the property tax.
No matter how you slice it, the government is going to tax you for it.
Death and taxes...
Uncle Paul
Well-Known Member
As long as your Model X is placed in service before the end of the year, you are eligible for the deductions.
If taking delivery close to the end of this year you might be able to schedule your delivery to put your deduction into either 2018 or 2019.
If taking delivery close to the end of this year you might be able to schedule your delivery to put your deduction into either 2018 or 2019.
SageBrush
REJECT Fascism
Direct your friend to the nearest Hummer dealership.
Good post, but worth highlighting that the above point will disqualify many people.
Bingo. That’s my situation — I drive to various clients.
Hence my novel use of the word "many" rather than "all".
But you can't just have a home office where you work on, say, some Fridays -- it has to be a qualifying home office where you really run your business.
This is the best summary of the rule: IRS Commuting Rule: Mileage Rules & Commute Definition
The key part being:
One way to avoid the harsh IRS commuting rule is to have a qualifying home office. In this event, you can deduct the cost of any trips you make from your home office to another business location. The commuting rule doesn’t apply if you work at home because you never commute to work. With a qualifying home office, you’re already at your work.
Your home office will qualify as your principal place of business if it is the place where you earn most of your income or perform the administrative or management tasks for your practice. You can increase your deductions for business trips with a qualifying home office.
Example: Kim maintains a home office where she does the administrative work for her business. She also has an outside office where she does her other work. She can deduct all her business trips from her home office. This includes the 20-mile daily trip to her outside office. Thanks to her home office, she can now deduct 100 miles per week as a business trip expense. This was a nondeductible commuting expense before she established her home office.
Your home office will qualify as your principal place of business if it is the place where you earn most of your income or perform the administrative or management tasks for your practice. You can increase your deductions for business trips with a qualifying home office.
Example: Kim maintains a home office where she does the administrative work for her business. She also has an outside office where she does her other work. She can deduct all her business trips from her home office. This includes the 20-mile daily trip to her outside office. Thanks to her home office, she can now deduct 100 miles per week as a business trip expense. This was a nondeductible commuting expense before she established her home office.
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Pass through taxes on many small businesses like service providers (real estate, lawyers, docs etc) are taxed as ordinary income, 37% or higher when you include self employment tax. Plus state tax.
