Foundation CT tax credit ?

[Don Draper]

You may be right. I’m not a tax expert. I’m just saying what my CPA told me. He has saved me lot of money in past with good valuable advice. I trust him.

For example: if you are buying Lamborghini Urs for transporting cardboard boxes for a cardboard business that’s generating great revenue, is that a red flag? I don’t know. If this is not the case, people can buy all sorts of luxury sports car, post a logo of their business on the car or do YouTube videos while driving the car, and write off half a million depreciation to claim tax credit. Probably people are doing that. I don’t know. I’m just telling what my good Accountant told me. After all, it’s called IRS risk tolerance. Someone might be audited or not audited. You can’t claim either ways. You do at your own risk.

Everything must pass some litmus test. A truck you waited 4 years to own for your real business. You purchased the cheapest one presently available, vs a Ford lightning or comparable model because you want the tax credit is not extravagant. Even though at present Cybertruck is perceived as an exotic vehicle, it is not. Does basic work stuff. AND, the government it telling you to buy it! By having this incentive. That's pretty much all you need to say in an audit. IRS says why did you buy the $100k truck? You say because electric vehicles cost more and the government gave me a $7500 credit to encourage me to use it in my business. If they give you crap, simply ask them to show you a cheaper option that can be used with the credit in 2024. How can they rebut this? Unless you don't really have a real business and don't own personal vehicles.

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[Cyber Man]

Even though at present Cybertruck is perceived as an exotic vehicle, it is not……

How can they rebut this? Unless you don't really have a real business and don't own personal vehicles.

I agree with you. To claim any tax credit, the business has to be a legit and legal. That’s given. My primary concern is the point you made - would IRS consider Cybertruck exotic and excessive for a legit small business? From technical standpoint, I can list so many reasons why it’s a perfect vehicle, but given that it’s so new and innovative, I don’t know how it’s perceived. My guy clearly told me to weigh the pros and cons of Ford Lightning and Cybertruck in terms of tax write off. It’s not just $7500 tax credit. It’s also writing off depreciation and any miles you put on the truck for Business (deliveries, cargo transport, home to office commute, etc.). He said the vehicle should not appear to be excessive or unnecessary from the lens of IRS, though the Business entity is legal, and you own a personal vehicle. Probably I should get second opinion from another Accountant. Honestly, owning a fleet of Cybertrucks is very good for the business. That might be an easy sell for IRS as there will be a fleet of vehicle. What I don’t know is how it’s seen when a legit Business is small or getting started and not making much revenue in early years. btw, he also told me I can do this later as well. Buy Cybertruck as personal vehicle for now, and when the business shows good revenue, repurchase it from the company.

 

[Don Draper]

I agree with you. To claim any tax credit, the business has to be a legit and legal. That’s given. My primary concern is the point you made - would IRS consider Cybertruck exotic and excessive for a legit small business? From technical standpoint, I can list so many reasons why it’s a perfect vehicle, but given that it’s so new and innovative, I don’t know how it’s perceived. My guy clearly told me to weigh the pros and cons of Ford Lightning and Cybertruck in terms of tax write off. It’s not just $7500 tax credit. It’s also writing off depreciation and any miles you put on the truck for Business (deliveries, cargo transport, home to office commute, etc.). He said the vehicle should not appear to be excessive or unnecessary from the lens of IRS, though the Business entity is legal, and you own a personal vehicle. Probably I should get second opinion from another Accountant. Honestly, owning a fleet of Cybertrucks is very good for the business. That might be an easy sell for IRS as there will be a fleet of vehicle. What I don’t know is how it’s seen when a legit Business is small or getting started and not making much revenue in early years.

Sorry I guess I didn't get my point across correctly, I am saying Cybertruck is not exotic, just a truck. But right now people perceive it as exotic because there are only a few around right now. Just a truck

 

[Cyber Man]

Sorry I guess I didn't get my point across correctly, I am saying Cybertruck is not exotic, just a truck. But right now people perceive it as exotic because there are only a few around right now. Just a truck

I totally agree! I just hope IRS agrees as well, at least before end of 2025 ?. Eventually after 5-6 years, I absolutely believe that Cybertruck can be used as valid Business vehicle. It’ll be more common and no longer considered a luxury commodity. I’m talking about right now for current tax year. Sorry I should have made that clear.

 

[Woodrick]

Just across a 2 car garage maybe 15 feet max.

Running across a 2 car garage would tend to need at least 30

Please, the government can't tell you how to spend your money if you follow the rules. I pick up cardboard boxes that won't fit in my model S. So the government is going to tell me I can only buy a minivan?
Maybe you need to present certain levels of professionalism or going to use it as a marketing tool. As long as these things fit your business needs should be ok. If your company is a "fake company" that doesn't create income or it's the only vehicle you own could be a problem.
I really dislike the fear of the IRS. Personally I keep my last company vehicle for 20 years and it cost about $45k. Not much of a stretch to say $100k 20 years later is extravagant.
Key in my opinion is don't try and game the system but also don't be afraid of the audit unless you have something to hide.
I tell you one thing, I will have many less auto expenses with my Cybertruck, no gas, no oil changes, no repairs first 4 years.

Agree.

As you said, creating a brand-new company that doesn't and hasn't had income starts to ring all sorts of bells.

Which can be translated as "I found this new wat to write-off my Cybertruck"

If this mechanism is new or unfamiliar with it, then what you are trying to do is probably contrary to tax law.

If you are going to add it to your exiting depreciation list, that's fine.

 

[josh@sourcesolarinc]

My company purchased my Cybertruck and I have commercial auto insurance. For tax purposes I am saying that the truck is used for 70% business, 30% personal use, so I'm getting pro-rated on various tax deductions. I've read that if you say that a vehicle is 100% for business use that's a huge red flag, but mine is legitimately 70/30 because I use it for work 5 days a week and for personal stuff on the weekends

Can I ask who your commercial policy is with? I am having a hard time finding a commercial policy for my truck.

 

[Fleetwood75]

Can I ask who your commercial policy is with? I am having a hard time finding a commercial policy for my truck.

Progressive

 

[igs]

For example: if you are buying Lamborghini Urs for transporting cardboard boxes for a cardboard business that’s generating great revenue, is that a red flag? I don’t know. If this is not the case, people can buy all sorts of luxury sports car, post a logo of their business on the car or do YouTube videos while driving the car, and write off half a million depreciation to claim tax credit. Probably people are doing that. I don’t know. I’m just telling what my good Accountant told me.

That's why there's a luxury vehicle deduction limit of $20K not half a million. Or did your good accountant not mention that?

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