Registration as Business or Personal Use

[jkwak11]

Hi. New to the forums! I have a quick question. So our Model X is on its way and we plan to use it for business use and therefore get the big tax deduction (Section 179) for the upcoming year. That said, when we register the car, does it HAVE to be registered under our business? Or can we register it as a personal under my personal name and still claim business use and have the tax deduction applied?

Thanks!

 

[Uncle Paul]

I have a California Corporation. No problem registering it in my own name as the profits of the company flow through to me personally for tax purposes. Much easier for insurance and other items by registering it personally. Was blown away at how little the X cost me on a net after tax basis.

Always a good idea to discuss this with whoever does your taxes, as everybody had different circumstances.

Best company vehicle I have ever had. Holds a ton for deliveries, use it to tow stuff around. Customers like to talk about it as many are considering Tesla for themselves. Like the idea on having a full charge every morning and not needing to stop for gas all the time.

It is quiet and easy to drive. The autopilot is great in rush hour traffic, the sound system/AC/heat all make driving around a breeze. The falcon wing doors are a little shower, but the big hatch and fold down seat make loading and moving stuff around easier than my previous 4 door sedan.

 

[DCGOO]

Hi. New to the forums! I have a quick question. So our Model X is on its way and we plan to use it for business use and therefore get the big tax deduction (Section 179) for the upcoming year. That said, when we register the car, does it HAVE to be registered under our business? Or can we register it as a personal under my personal name and still claim business use and have the tax deduction applied?
Thanks!

It probably depends on how your business is set up, single member LLC (disregarded entity), LLC or a Corp. Only your accountant can advise.

 

[jkwak11]

It is a self proprietorship. In this case, anyone know?

 

[P85_DA]

It is a self proprietorship. In this case, anyone know?

Under ur name is fine than ..that’s how I did my 179 previously as it’s pass thru

 

[cpa]

My wife used to work in claims back in the day. She told me that insurance companies do not like to write personal policies for commercial purposes. She said that if a business person buys a personal policy for their auto that is used (never mind registered) commercially, and he files a claim, the insurance company will probably pay the claim. Then the insurance company will cancel the policy (probably need to read the fine print on the contract.) The insurance company will require the owner to purchase a commercial policy going forward. And your agent will not be able to finesse a new personal policy with a different company.

We accountants do not care how the policy reads. The Service likely does not care if the taxpayer keeps accurate contemporaneous records for business use to support the tax deductions.

It just seems prudent to play by the insurance company's rules. They hold the cards. Sure, the premium is less for a personal policy. But it is not that much less--especially if you have to get into a urinating contest with the insurance company. They hold the cards, remember. They hate to pay claims, and they have a fleet of lawyers ready to dissect any misstep by the policy holders.

Talk to your agent. Let him or her make the call and advise you. That is the safest bet. The agent has errors and omissions insurance if they steer you wrong.

 

[Uncle Paul]

As a sole proprietor you can both register and insure your car in your own name.

 

[rsm1444]

If you register as a business with Title in my Name and Business. When filing CA $2500 rebate. Should i select Business or Individual

 

[jkwak11]

Thanks guys! Really appreciate it