Good to know. Thanks! I’ll look into that some more. I wonder if the truck can be registered in the personal name on a s-corp or would it still need to be registered in the business name
Finally, someone who's done this! I've been looking for you, lol. Anyway, I have an S-corp and my accountant is supposed to get back to me regarding this question, as he has to research after tax filing for October is over, but if you can help it'd be much appreciated. I have the following questions:
S-corp, probably business, LLC doing business as self, self. But there may be a requirement for commercial insurance on the vehicle.
Yeah, if I were doing onsite work I'd look into turning my barn into my office... With that setup I could just take the milage deduction instead and skip all the other recordkeeping and potential future recapture issues.
Must be registered in the business name. After 1 year you can move it to your own name and transfer it, but your 179 may not look so pretty for you if you do that. If you dont take the 179 then it's like buying it personally to do that. There are IRS rules on vehicle value and taxation personally when you do this. The good news is this thing should depreciate like crazy which in that instance, you will do well. Just remember you need it to be used for 50% minimum for the business in order to take the deduction.
Do you know where tesla is sourcing batteries from? Definitively?
No requirement for the insurance, although I do have it as a part of my general liability insurance since some of my clients require it. My vehicles owned by my business are all individually insured through State Farm. I believe special insurance will be required if you do ride sharing with it. Then it gets messy.
The news articles earlier this year said two or three Chinese suppliers.
Coolness, looks like State Farm offers commercial optionally versus requiring it on business vehicles.
The paperwork was put in my company's name. I didn't finance it. I bought it cash. I think you would need to discuss it with your finance company to see. Many states allow you to title it with the AND or OR. You need to check with your state's laws. Colorado is an AND state.
Yep. You really do want your company's name on that sales invoice. That is what the IRS is going to want to see. Tesla does nothing but file it with the state for registration. Your accountant will fill out the necessary form for your 1120s at the end of the year and submit it with your taxes.
Yep.
So no?
That's awesome, thank you so much, this is helpful! I hope Texas is an AND state, would make it easier.
Since I don't work for Tesla, no, not definitively.
A point to note... I originally ordered it in my name. I had about a week before I was going to pick up the vehicle. I spoke to my accountant and he said "absolutely do this". So I called my sales rep at Tesla and had him change all the paperwork. He kept making changes and I had to refresh to the app to be sure it all looked good. We literally did this at the last minute.
Good to know! I'll have to do the same. I'm RN11434 so I still have some time. That way if it does get the regular tax credit, I'll go that route, if not, I run it through the S-Corp.
Just remember... if you keep it in your S-corp, it's section 179. That means you can write most of it of this year (I think 80%?). That comes right off your income as an expense. It may behoove you to take that deduction because if you are in the 39% tax bracket, thats what you save additionally because you don't have other pay income tax on that amount. After a few years and depreciation eats that vehicle alive, then transfer it to your personal so you don't take any income on the delta. (This is what my accountant explained to me).
