Has anyone concluded for sure what all tax deductions and incentives the Model X will qualify for if purchased as a business vehicle? I know there were talks about the "Hummer" tax break, but can you claim that in addition to the federal and state incentives? I'm asking here because the local CPAs around northern Louisiana don't have a clue about this car, and electric vehicles in general because not many are purchased around here.
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Model X tax incentive questions regarding purchase for business
- Thread starter Moparposterchild
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- Model X
aesculus
Still Trying to Figure This All Out
There are tax credits from the fed and some states. These have nothing to do with the car being used as a business. They just come off the tax owed when you file.
A business expense comes off the income you generate with the vehicle and could potentially lower your taxes because it offsets some or all of your income. The 'Hummer tax break' is because certain vehicles with a GVW over 6000 lbs (the Model X) qualified for a larger Schedule 179 amount ($25k) versus a standard car. But your deduction will also be tempered by how much the business uses the car versus your pleasure use, and when you placed it in service.
So the only thing new here is the Model X GVW allows the larger schedule 179 amount during your first year. Otherwise it's just like any other EV.
A business expense comes off the income you generate with the vehicle and could potentially lower your taxes because it offsets some or all of your income. The 'Hummer tax break' is because certain vehicles with a GVW over 6000 lbs (the Model X) qualified for a larger Schedule 179 amount ($25k) versus a standard car. But your deduction will also be tempered by how much the business uses the car versus your pleasure use, and when you placed it in service.
So the only thing new here is the Model X GVW allows the larger schedule 179 amount during your first year. Otherwise it's just like any other EV.
