Turo guest towing my truck

[hemiarch]

Isn’t it proportional to business vs personal use? Are you thinking of the 50% use rule that prevents first year bonus depreciation from being clawed back?

I think so. That terminology of bonus depreciation sounds familiar and correct to me. I’m certainly no expert in this but we we did turo with a model x for a while before the pandemic for this reason. My accountant was able to depreciate the full value of the vehicle over the first year of ownership because it was over 6000lbs GVW and more than 50% for business use. The miles are miles as you pointed out and proportional to business use.
Interestingly we were generating quite a bit more than the value of the car payment in revenue at the time so it was a worthwhile endeavor, but it was more than a little pain in the butt. Both my wife and I put considerable effort into it so it wasn’t exactly easy money.
I was on a number of committees that discussed COVID-19 early on because I’m what you might call an “expert” in a technology called ECMO which is a salvage therapy for bad respiratory failure so I’d say I understood the implications of the pandemic earlier than most people. Because of this, I put and end to that practice of public interaction for my family as soon as I learned what was about to come in early 2020 and that’s where the extent of my involvement with turo ended.
Nowadays, even if the business depreciation laws were the same (which I’m not sure they are), I wouldn’t do it over again. Especially with the Cybertruck which likely attracts a certain kind of renter with the potential to be crazier than most other vehicles and also some of those renters are likely to be interested in trashing the car off-road which is a whole other can of worms.
The details of doing it again today are not something I have researched enough to comment on , but our decision as a family nowadays is “no thank you”, not worth the deduction no matter what it is.

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[mongo]

I think so. That terminology of bonus depreciation sounds familiar and correct to me. I’m certainly no expert in this but we we did turo with a model x for a while before the pandemic for this reason. My accountant was able to depreciate the full value of the vehicle over the first year of ownership because it was over 6000lbs GVW and more than 50% for business use. The miles are miles as you pointed out and proportional to business use.
Interestingly we were generating quite a bit more than the value of the car payment in revenue at the time so it was a worthwhile endeavor, but it was more than a little pain in the butt. Both my wife and I put considerable effort into it so it wasn’t exactly easy money.
I was on a number of committees that discussed COVID-19 early on because I’m what you might call an “expert” in a technology called ECMO which is a salvage therapy for bad respiratory failure so I’d say I understood the implications of the pandemic earlier than most people. Because of this, I put and end to that practice of public interaction for my family as soon as I learned what was about to come in early 2020 and that’s where the extent of my involvement with turo ended.
Nowadays, even if the business depreciation laws were the same (which I’m not sure they are), I wouldn’t do it over again. Especially with the Cybertruck which likely attracts a certain kid of renter with the potential to be crazier than most other vehicles and also some of those renters are likely to be interested in trashing the car off-road which is a whole other can of worms.
The details of doing it again today are not something I have researched enough to comment on , but our decision as a family nowadays is “no thank you”, not worth the deduction no matter what it is.

Yeah, buying an X in late December, using it 100% for business that month, depreciating the whole thing, then maintaining >50% business usage was a hot topic under the old tax code.