I’m the one that referenced the Tax Cut and Jobs Act way back when. Here is a brief write up from the IRS:
Section 13201 of the Act amended § 168(k) to extend and modify the additional
first year depreciation deduction for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2027. Section 168(k)(1) provides that, in the case of qualified property, the depreciation deduction allowed under § 167(a) for the taxable year in which the property is placed in service includes an allowance equal to the applicable percentage of the property’s adjusted basis (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”). Pursuant to § 168(k)(6)(A), the applicable percentage is 100 percent for qualified property acquired and placed in service after September 27, 2017, and placed in service before January 1, 2023, and is phased down 20 percent each year for property placed in service through December 31, 2026.
Here is an IRS FAQ page:
Additional First Year Depreciation Deduction (Bonus) - FAQ | Internal Revenue Service
This only applies for “qualified property”.
The definition for “qualified property” doesn’t list heavy vehicles itself but here’s another article from a CPA website that talks about it (I’m sure you can find it in the IRS published opinions if you have the time):
Heavy Vehicles
Heavy SUVs, pickups and vans are treated for tax purposes as transportation equipment. So, they qualify for 100% first-year bonus depreciation and Sec. 179 expensing if used more than 50% for business. This can provide a huge tax break for buying new and used heavy vehicles.
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Business Vehicle Purchases: What Is Deductible for 2020? - Mize CPAs Inc.
The key is heavy vehicle- a vehicle with a GVWR of 6,000 pounds or greater (not weight but GVWR):
100% first-year bonus depreciation is only available when an SUV, pickup, or van has a manufacturer’s gross vehicle weight rating (GVWR) above 6,000 pounds. Examples of suitably heavy vehicles include the Audi Q7, Buick Enclave, Chevy Tahoe, Ford Explorer, Jeep Grand Cherokee, Toyota Sequoia, and lots of full-size pickups.
Learn how to save on taxes from your small business purchase of a vehicle last year with a bonus depreciation.
www.wexinc.com
What is the Tesla Model X Long Range GVWR?
This I’m not sure about. If it’s under the 6,000 lb GVWR “heavy equipment” then this won’t apply. The 2020 Model X LR+ we have is 6,788 pounds (it’s located at the very bottom by the FWD on the driver side door frame. The tire pressure is visible on a different sticker much higher up. This sticker is way down by your black exterior trim).