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TESLA X section 179

Discussion in 'Model X' started by EXOTIC1, Feb 22, 2020.

  1. msfraut97

    msfraut97 New Member

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    I believe so, not 100% certain though!
     
  2. bayareaever

    bayareaever Member

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    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!
     
    • Informative x 1
  3. cusetownusa

    cusetownusa Member

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    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.
     
  4. jboy210

    jboy210 Supporting Member

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    Usually, you prorate personal usage and need to pick up the usage percentage on your personal taxes as a benefit.
     
  5. Uncle Paul

    Uncle Paul Well-Known Member

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    Some have taken delivery in December. For that time they use it exclusively for work, and take 100% deduction right away.
     
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  6. ithinkmac

    ithinkmac Member

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    yes, allowable as long as it falls under your business needs.

    makes the X more attractive vs a Y.

    -ThinkMac-

     
  7. TMYB-C1

    TMYB-C1 Supporting Member

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    I definitely have no need to haul anything, but I am now taking a 500 mile Roundtrip drive to my client for meetings with an estimated 250 miles of personal use monthly.
     
  8. Uncle Paul

    Uncle Paul Well-Known Member

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    #28 Uncle Paul, Feb 27, 2021
    Last edited: Feb 27, 2021
    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.
     
  9. TMYB-C1

    TMYB-C1 Supporting Member

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    Any issues with my wife being on the title?
     
  10. bayareaever

    bayareaever Member

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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?
     
  11. jboy210

    jboy210 Supporting Member

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    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.
     
  12. Uncle Paul

    Uncle Paul Well-Known Member

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    Section 179 is a credit against taxes. If you have no profits you have no tax write off.

    The write off cannot be used to offset income from outside your business.
     
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  13. jboy210

    jboy210 Supporting Member

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    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.
     
  14. Uncle Paul

    Uncle Paul Well-Known Member

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    The company does not have to be on title, if you are owner or officer of the company. Credit passes through.
     
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  15. jboy210

    jboy210 Supporting Member

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    Guess it depends on the business. We are a C Corp and my wife and I are officers. Corporation writes monthly checks on Teslas.
     
  16. TMYB-C1

    TMYB-C1 Supporting Member

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    I'll keep this in mind if I'm looking for another vehicle in the future. Thanks for the info all!
     
  17. drew231506

    drew231506 New Member

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    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!
     
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