Hummer Tax / Sect 179 Deduction Anyone?

[cyberkory]

Just curious who is taking advantage of this loop hole; and I'm sure we have some accountants in here that can also help spark some light on it much more than I can.

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[Gigahorse]

Just curious who is taking advantage of this loop hole; and I'm sure we have some accountants in here that can also help spark some light on it much more than I can.

In order to utilize this it needs to be used for a business.
1. A lot of people do not own a business
2. Creating a business for this writoff is asking for an audit and cost prohibitive
3. Purchasing a large vehicle like this if you are a Dentist, accountant, or other business that can not justify a large vehicle for your business is also asking for an audit.

A lot of businesses won't qualify via the ordinary and necessary requirements to utilize the 179 deduction.

 

[Sanmartindan]

Its a nice deduction when you buy. But when you sell the vehicle, the funds go back into the business and are treated like income (sale of an asset)

 

[Fleetwood75]

Yes, I am a Structural Engineer. My corporation is buying the truck, which I will use to drive to construction sites for inspections. It also qualifies for the Clean Commercial Vehicle tax credit. Planning to list my usage as 70% business, 30% personal, so I guess I can really only deduct 70% of it, but I hear that claiming 100% business use on anything less than like a dump truck is a huge red flag with the IRS

 

[Diveflyfish]

In order to utilize this it needs to be used for a business.
1. A lot of people do not own a business
2. Creating a business for this writoff is asking for an audit and cost prohibitive
3. Purchasing a large vehicle like this if you are a Dentist, accountant, or other business that can not justify a large vehicle for your business is also asking for an audit.

A lot of businesses won't qualify via the ordinary and necessary requirements to utilize the 179 deduction.

I am glad you mentioned this. I was wondering if the write off would be applicable if the use of the CT were as an alternative power supply for a business. Thank you.

 

[Gigahorse]

I am glad you mentioned this. I was wondering if the write off would be applicable if the use of the CT were as an alternative power supply for a business. Thank you.

While some areas can write off solar and battery tech for their business the 179 tax code does not provide for battery or EV savings, just based on the weight of the vehicle.

 

[X-Press-O]

I think having a real estate business is perfect for the 179 deduction. You can just most places you drive are for business purposes. I have been trying to get my spouse to take the RE course as a side hustle even selling 1-2 houses a year is great.

Currently I have my CT on order. I purchased a RV rental lot, under an LLC. I will need to drive to the location to make land improvements, ch3ck on the site etc.. and I am also planning to use the 179 Deduction for thr CT.

If I take delivery 3-4 months from now (Aug-Sep) I'm also thinking to only use the CT for 100% business until the end of the year, last 4 month. Then starting 2025 I'll start using it more for business & personal use. From my understanding regardless when you receive it during the year does not matter. Example if I received it in Dec 2024 and use it 100% for Business in Dec I can still claim 100% use on Sec 179 for 2024 tax year which is same deduction as if I were to use it for full 12 months in 2024.

I'm not an expert but this is just my understanding, how it actually plays out on paper I have no idea yet.

 

[M0unt41nm4n]

I think having a real estate business is perfect for the 179 deduction. You can just most places you drive are for business purposes. I have been trying to get my spouse to take the RE course as a side hustle even selling 1-2 houses a year is great.

Currently I have my CT on order. I purchased a RV rental lot, under an LLC. I will need to drive to the location to make land improvements, ch3ck on the site etc.. and I am also planning to use the 179 Deduction for thr CT.

If I take delivery 3-4 months from now (Aug-Sep) I'm also thinking to only use the CT for 100% business until the end of the year, last 4 month. Then starting 2025 I'll start using it more for business & personal use. From my understanding regardless when you receive it during the year does not matter. Example if I received it in Dec 2024 and use it 100% for Business in Dec I can still claim 100% use on Sec 179 for 2024 tax year which is same deduction as if I were to use it for full 12 months in 2024.

I'm not an expert but this is just my understanding, how it actually plays out on paper I have no idea yet.

One more advantage... you get to take the full $7500 EV credit from the Feds for the Commercial Clean Vehicle credit. There is no income or MSRP that applies when its purchased by a business ;-) That's a nice pass-through to you on a small business since you are a LLC.

https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit

 

[Texarado]

If I take delivery 3-4 months from now (Aug-Sep) I'm also thinking to only use the CT for 100% business until the end of the year, last 4 month. Then starting 2025 I'll start using it more for business & personal use. From my understanding regardless when you receive it during the year does not matter. Example if I received it in Dec 2024 and use it 100% for Business in Dec I can still claim 100% use on Sec 179 for 2024 tax year which is same deduction as if I were to use it for full 12 months in 2024.

X-Press-O, this is the key. Keep records. Take photographs or tire rotation at 12/31 so you have good docs in case audit. Do that and you’ll be fine.

 

[mhaze]

Just curious who is taking advantage of this loop hole; and I'm sure we have some accountants in here that can also help spark some light on it much more than I can.

Yes I am going to use the 179 deduction, but I fully qualify. Not sure if that helps people who would like a deduction but are trying to barely squeeze by...

 

[Gurule92]

I think Lyft and Uber drivers can use it no? Way more than 50% of my miles go toward business.

 

[The Tumbler]

One more advantage... you get to take the full $7500 EV credit from the Feds for the Commercial Clean Vehicle credit. There is no income or MSRP that applies when its purchased by a business ;-) That's a nice pass-through to you on a small business since you are a LLC.

https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit

I was just going to add this… My real estate company S corp which I am the only owner of bought the CT. End of they day the Gov’t will pay for between $40-50k of the truck.

 

[DeadSetElectric]

Isn’t there a limit of $30k to deduct with section 179? I keep finding conflicting information online and haven’t had this conversation with my accountant yet (still worrying about last years taxes).

 

[M0unt41nm4n]

Isn’t there a limit of $30k to deduct with section 179? I keep finding conflicting information online and haven’t had this conversation with my accountant yet (still worrying about last years taxes).

Only for vehicles under 6k GVWR.

 

[Johnelrod12]

We live down here in Parrish, FL. Have a lawn care business and my wife and I are both real estate agents. We spend about $500 a month in fuel right now with our F150 but that cost will go up as we grow our businesses. Didn’t spend enough last year from our business account. This year we will be writing off everything 100% from the toilet paper to the Cybertruck. We use our home for business location. She will be getting 100% VA disability soon so no property taxes and no Private mortgage insurance. ?

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