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Tax credit and deduction

Discussion in 'California' started by Helen Lau, Feb 15, 2016.

  1. Helen Lau

    Helen Lau Member

    Feb 15, 2016
    Pasadena, CA
    I'm confused and hoping someone here and help clear up. We are looking into the Model X, and we own a S Corp. We would like to take advantage of the $7500 federal credit and also the hummer credit. Does the car has to be under the company's in order to take advantage of the hummer credit? Since S Corp does not pay any taxes, and everything flows through to the owner's personal return, how does the $7500 credit work when the car is under the business's name? I just want to make sure I'm doing this correctly putting the car either under personal or business name and avoid any surprises only comes tax time. Thanks in advance!!
  2. Ampster

    Ampster Active Member

    Oct 5, 2012
    Sonoma, California
    I am also interested in the answer. I am in a similar situation although I have an LLC in which the concepts are the same. My limited research has determined that the tax credit will pass through to my personal return, presumably on my K-1. As far as the Hummer credit is concerned, it simply allows the corp or llc to accelerate depreciation for the Model X which reduces the income of the entity that reports. I don't expect to get my Model X until early summer so I intend to talk with my tax accountant about structure after I file last years return.
  3. cpa

    cpa Active Member

    May 17, 2014
    Central Valley

    Ampster, that is the absolute best advice. Consult with your tax professional in advance to determine how to effect your purchase. The Internal Revenue Code should be your slave, and not your master. Regrettably too many people have this backwards.

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