Model X may qualify for 50% business write off.

Vitold · Sep 1, 2015

I read here that Model X weighs 6100lbs...if that's right, under IRS rules, business owners can deduct up to 50% of it's value!...as long as it can fulfill the following requirements (from article linked above):

A. Your crossover vehicle is a truck if you can create a flat, floor-level surface from the front seats to the rear by removing the seats using simple tools such as screwdrivers and wrenches.5

B. Your crossover vehicle is a truck if it first has either (a) four-wheel drive or (b) a GVWR of more than 6,000 pounds, and second has four or more of the following five characteristics:6

1.Approach angle of not less than 28 degrees

2.Break-over angle of not less than 14 degrees

3.Departure angle of not less than 20 degrees

4.Running clearance of not less than 20 centimeters

5.Front and rear axle clearances of not less than 18 centimeters

I guess, all that speculation on how seats fold is not w/o it's merits. :biggrin:

EDIT: Hm...this website says that it's limited to $25k right now.

paintpolisher · Sep 1, 2015

It used to be 100% a few years ago. I wrote off a truck that I purchased for $55k.

I hope to do the $25k. Time w tell.

ScepticMatt · Sep 2, 2015

The X has a "hump" over the rear drive train, so I can't see how you can possibly fulfill criteria A.

FlasherZ · Sep 2, 2015

Yes, the bonus depreciation dance has been crazy the last few years. Congress generally gets lobbied near the end of the year and makes some changes to it. We're back to the $25K limit at this moment, but you won't know until December or so whether they go back to 50%, 100%, etc.

ibcs · Sep 2, 2015

I checked the clearance is 7.2" on the so option #5 is out of the question. Do any of the first four criteria fit? This is huge for small business owners to purchase the vehicle.

AnOutsider · Sep 2, 2015

ibcs said:
I checked the clearance is 7.2" on the so option #5 is out of the question. Do any of the first four criteria fit? This is huge for small business owners to purchase the vehicle.

18cm is just over 7". 7.2" wouldn't count?

Vgsllc1 · Sep 2, 2015

thinking about upgrading to the X as primary biz vehicle. I generally only claim the mileage only.

djc · Sep 2, 2015

I bet with 22 in tires and putting the suspension at the highest setting, then you could get it over the 18/20 cm you need. Just make sure to raise it when they question you.

Jeva · Sep 2, 2015

My wife has a Touareg and it qualifies.

Vitold · Sep 2, 2015

Apparently Section 179 rules change from year to year. What I posted originally it's not the latest, but I'm having difficulty finding Section 179 for 2015 and rules will probably be different for 2016.

jimmyjohn · Sep 2, 2015

The -- corrupt -- US politicians (in bed with NADA) who fervently set up barriers to the Tesla Motors distribution network must be torn ---- knowing that their arbitrary laws that incentivize the purchase of big, gas sucking oil trucks (for business purposes --- dubious in most cases) will also be used to strengthen Tesla Motors. Once an idiot, always an idiot.

FlasherZ · Sep 2, 2015

Vitold said:
Apparently Section 179 rules change from year to year. What I posted originally it's not the latest, but I'm having difficulty finding Section 179 for 2015 and rules will probably be different for 2016.

Generally, they aren't set until December as Congress deals with it at the very last minute. Given the fragility of the economy, I wouldn't be surprised to see a great bonus depreciation number this year, but who knows what next year will bring.

AnOutsider · Sep 2, 2015

So it is pretty much understood and agreed that the X qualifies?

Cowby · Sep 2, 2015

AnOutsider said:
So it is pretty much understood and agreed that the X qualifies?

oh please let it be so!

idoco · Sep 3, 2015

Are businesses eligible for the $7500 EV federal tax credit and state tax credits?

arthur campbell · Sep 3, 2015

Tax Credit and Section 179 Deduction on the Model X

Will the IRS allow a Tax Credit of $7500 and a Section 179 Tax Deduction ($25000 max) for 2015 on the Model X ?

arthur campbell · Sep 3, 2015

The Model X appears to meet IRS Section 179 Deduction ($25000 max ) for 2015.
Are both the Deduction and the $7500 Tax Credit eligible? I do not know of any
Vehicle to compare with.

flyhigh123 · Sep 3, 2015

how would this bus write off work if i'm a sole proprietorship as a side business?

Jeva · Sep 3, 2015

^^^ I can't answer the above (my wife probably can) but I do know if you buy it as a business vehicle, it's only supposed to be driven for business. Mileage is to be tracked and recorded in the event of an IRS audit - violate this at your own risk. On a gasoline vehicle, the fuel is also tax deductible which brings up an interesting scenario. Can you deduct the cost for charging?

lodenthal · Sep 3, 2015

I wonder if the Nissan NV electric truck, kind of a delivery truck gets both credits. I'll ask some Nissan guys...

Model X may qualify for 50% business write off.

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