$7500 business tax credit

[trentsize]

Is anyone planning to take advantage of the $7,500 business tax credit (clean commercial vehicle)? If so, what is your business and how will you use the CT for it?

There is no MSRP or income limit, so the foundation series should qualify, assuming it’s a legitimate use.

I promise I’m not the IRS lol

Sponsored

 

[yawn-whine]

I bought it with the intention of using it for marketing. If the IRS ever questions it I'm making a log of all the times I see people taking selfies with it.

 

[Dmitrij]

I bought it with the intention of using it for marketing. If the IRS ever questions it I'm making a log of all the times I see people taking selfies with it.

I believe it is still extremely rare in MN?
I’m going to check it in 3 weeks

 

[DaBagBoy]

following

 

[Brandon708]

We are using our CT as a business vehicle. We use it to go on installs, site surveys, pick up materials, and advertising. We are going to wrap it and include our logo on the vehicle to advertise our company and that we do wraps.

In addition to the $7,500 tax credit, you will want to look into Section 179 special tax deprecation. As this vehicle qualifies because it's over 6,000 lbs. The 179 is the most important part and could save around 23k in tax liabilities.

 

[NaptownRick]

I also had my business purchase the CT (AWD), I own a millwork company and window/door distribution business. I use it for advertizing just driving around and in parades (like 4th of July this week) as well as everyday for my daily driver going to jobsite measures, delivering extra materials to customers, and back and forth between our branches as I do carry materials like doors, windows, trim, cabinets etc...to and from jobsites and between our locations.

Link below:

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

As mentioned by Brandon708 above, it also qualify for the Section 179 (known as the "Hummer Loophole") due to the weight over 6000lbs, and yes this application is way more valuable to a business than the clean vehicle credit, although I'll take them both!

Definintely check with your CPA to ensure you're in compliance, which is what I have done.

Good luck!

 

[trentsize]

I also had my business purchase the CT (AWD), I own a millwork company and window/door distribution business. I use it for advertizing just driving around and in parades (like 4th of July this week) as well as everyday for my daily driver going to jobsite measures, delivering extra materials to customers, and back and forth between our branches as I do carry materials like doors, windows, trim, cabinets etc...to and from jobsites and between our locations.

Link below:

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

As mentioned by Brandon708 above, it also qualify for the Section 179 (known as the "Hummer Loophole") due to the weight over 6000lbs, and yes this application is way more valuable to a business than the clean vehicle credit, although I'll take them both!

Definintely check with your CPA to ensure you're in compliance, which is what I have done.

Good luck!

The Tesla website (and IRS) says you can only claim Sec 179 deduction up to $28,900, not the full MSRP. The value saved wouldn’t be worth quite as much as $7,500 especially with less than 100% business use? You could add the bonus depreciation on top of that, but with that or 179 I believe you won’t be able to use the standard mileage deduction for the rest of the time.

https://www.tesla.com/support/incentives

 

[Woodrick]

Is anyone planning to take advantage of the $7,500 business tax credit (clean commercial vehicle)? If so, what is your business and how will you use the CT for it?

There is no MSRP or income limit, so the foundation series should qualify, assuming it’s a legitimate use.

I promise I’m not the IRS lol

This is the Tesla Semi forum, not the Cybertruck.

 

[trentsize]

This is the Tesla Semi forum, not the Cybertruck.

I see that, but I swear I had it in general. How do I change it?

 

[NaptownRick]

The Tesla website says you can only claim Sec 179 deduction up to $28,900, not the full MSRP. The value saved wouldn’t be worth quite as much as $7,500 especially with less than 100% business use?

https://www.tesla.com/support/incentives

Again, would encourage everyone to check with your CPA, as there is no fixed amount other than the partial deduction cap (in the case of the CT, which is eligible because of it's weight)...which I believe was $28,900 in 2023 but for 2024 I believe it is up to $30,500. This link below has some information:

https://www.section179.org/section_179_vehicle_deductions/

Depending on what type of company you have (LLC, Type S, Type C, etc..) and your tax bracket, your net savings could differ from another business owner, which is why everyone should talk to their CPA. If you end up in a higher tax bracket because your business is more successful, the deduction would net you more than someone in a lower tax bracket. Again, I'm not a tax expert but someone in a 35% tax bracket should net a savings of $10,675 on the $30,500 max deduction.

-Rick

 

[Woodrick]

I see that, but I swear I had it in general. How do I change it?

Ask the admin to move it or close this thread and create a new one.

 

[M0unt41nm4n]

Is anyone planning to take advantage of the $7,500 business tax credit (clean commercial vehicle)? If so, what is your business and how will you use the CT for it?

There is no MSRP or income limit, so the foundation series should qualify, assuming it’s a legitimate use.

I promise I’m not the IRS lol

You betcha! I could care less if you are the IRS because its all legal

The option folks have here as well, are to buy it under the business, get the $7500.00 deduction as a pass through to your personal (LLC and S-corp), then just take the vehicle as a distribution after the section 179, and place it in your personal name after 1 year. Thats basically like buying it yourself, getting $30K off your income taxes for 179, getting the $7500.00 credit back, and then owning it personally. It's using the business loophole and eventually have it in your own name after 1 year in your business. Even better the transfer is done on its current value, and the way these things are gonna depreciate, you even get more money off taxes for the distribution. i.e. if the CT is worth $50K in a year due to extreme EV depreciation, then thats the asset transfer value.

Yes, I spoke to my CPA about it.

Honestly, everyone should get the $7500 credit because it's ridiculous that we have to jump through these hoops to get the $7500, that ends up with the same outcome.

 

[Vegetaban]

Did the $7,500 come out at the time of purchase or will it come off at tax time?

 

[mcdull]

Did the $7,500 come out at the time of purchase or will it come off at tax time?

Good question. Curious to know too.

 

[trentsize]

Did the $7,500 come out at the time of purchase or will it come off at tax time?

There’s no indication it can be in any publication I’ve seen, and I highly doubt it when anyone could come in with a new “business” to get a discount right away.

Sponsored