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TESLA X section 179
- Thread starter EXOTIC1
- Start date
my long time cpa/friend said he hasn’t seen any audits in over a decade or more.
To qualify, in my case, I would have to fib a bit on the personal vs business miles. I’m thinking it will be worth it, hopefully he agrees!
Doesn’t the vehicle need to be used solely for business purposes? How would a physician or accountant take advantage of it? I’m a small business owner but thought it wouldn’t apply to me because it wouldn’t be used solely for business purposes.
Usually, you prorate personal usage and need to pick up the usage percentage on your personal taxes as a benefit.
Uncle Paul
Well-Known Member
Some have taken delivery in December. For that time they use it exclusively for work, and take 100% deduction right away.
ithinkmac
Member
yes, allowable as long as it falls under your business needs.
makes the X more attractive vs a Y.
-ThinkMac-
makes the X more attractive vs a Y.
-ThinkMac-
Uncle Paul
Well-Known Member
If you have a profitable small business, then usually Section 179 plus accelerated depreciation will make your net cost of a Model X less than a Model Y.
X will give you much longer range and be more comfortable on 500 mile trips. Adaptive air suspension gives a great combination of smooth quiet ride plus great handling. Is impressive if you give clients a ride. Downside is that they are slightly less efficent and your energy costs will be a little more. The 100 kWh battery in the X is well respected.
X will give you much longer range and be more comfortable on 500 mile trips. Adaptive air suspension gives a great combination of smooth quiet ride plus great handling. Is impressive if you give clients a ride. Downside is that they are slightly less efficent and your energy costs will be a little more. The 100 kWh battery in the X is well respected.
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what if the small business is already regularly taking a small loss because of home office expenses. Anything wrong with taking a much bigger loss one year?
The company should be on the title and paying for things. You don't want to intermix business and personal items on tax returns. Now if your wife is a paid employee of the company that will work.
Uncle Paul
Well-Known Member
You need to show a profit sometime or have a large number of activities to justify the ongoing loss. Otherwise, the IRS may declare it a hobby instead of a business.
Uncle Paul
Well-Known Member
The company does not have to be on title, if you are owner or officer of the company. Credit passes through.
Guess it depends on the business. We are a C Corp and my wife and I are officers. Corporation writes monthly checks on Teslas.
We are trying to decide between a new Y or a used X. I dont think we will be able to write off 100% business use if we purchase it now. These numbers make sense to you?
Model X= $80k
Business Use 75%= $56k
Tax write off= 32% of $56= $18k
Cost of Model X= $80k-$18K= $62k
Cost of Model Y- ~$55k
Is that the correct way to look at it? What about recapture?
Thank you!
ithinkmac
Member
you can write off the mileage for the Y, which really is a pretty good advantage considering the IRS still uses gas calculations. 56 cents in 2021, that's close to $17k in mileage alone. So if you have solar to charge your car. that 30k miles will cost you $0.
But of course with bonus depreciation, you will do better with a X becasue of the GVWR. Good luck.
-ThinkMac-
But of course with bonus depreciation, you will do better with a X becasue of the GVWR. Good luck.
-ThinkMac-
Maybe. I'd try to stay as close as possible to "this is a business asset that the business owns".
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