Does Model X qualify for Section 179 $25000 Deduction?

Estimate the Model X will be priced at Model S + 10% based on Musk's published comments.

We may have Model 3 reservations before Model X orders.

 

Sorry WJtracy - late entry. The Model X 'perk' actually turns on whether it has a 70kWh versus the 90kWh traction pack. Is that wild? The heavier pack puts the Model X over the 6,000Lb Hummer threshold. It's NOT the pack size, but rather the weight, that gives the tax advantage (we used it back in the 'dark' days of Range Rover ownership). That said, the tax advantage isn't really all that egregious. What the heavy weight means is - you get to write off a significant part of the vehicle, for business purposes (so yes, it presumes it's a vehicle primarily used for business) all up front - in one year - for depreciation (not necessarily the whole cost) as opposed to taking the business write off over many years. Down side? If you wrote off $25K then turn around at the end of the year and sell it (say for example ... only $40K) and buy another business vehicle ... the new vehicle (say you buy it for $50K) will only be considered a $15K purchase for write off's, because the $25K write off you took on the Model X is tagged onto the new ride. The tax man always gets his due.
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accelerated depreciation is a purchasing stimulus to the economy, but not that great of a benefit.

and it's write off against profits, not a tax credit.

 

Be careful using that Model X bought for the business for personal use. Personal use of a company vehicle is reportable income.

 

To answer your question;

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Here in Cali, tax rules (Board of Equalization) permit personal use. If 10% or 20% is personal, you're limited depreciation & maintenance costs are based off the remaining percentage. Same w/ Feds. Whether there is taxpayer abuse - is another story.

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