Will cybertruck weight mean it qualifies for sec.179 tax deduction?

[Odiggity]

Vehicles over 6000lbs can write off up to $25k purchase price. Does that mean if you use cybertruck for biz you can write it off without depreciated it‽

Sponsored

 

[Crissa]

I hope not. That needs to go away.

-Crissa

 

[Cyber_Dav]

I recommend talking to a tax professional, not us.

 

[Diehard]

here is some notes on the subject:
https://www.financialsamurai.com/tax-rules-for-buying-a-vehicle-and-deducting-as-a-business-expense/

I am not sure how reputable the source is.

 

[azjohn]

There is a good chance the Cybertruck will weigh less than 6K lbs

 

[DarinCT]

There is a good chance the Cybertruck will weigh less than 6K lbs

The model X gross vehicle weight is close to 6800 pounds. I believe the CT will weight more.

 

[DarinCT]

Vehicles over 6000lbs can write off up to $25k purchase price. Does that mean if you use cybertruck for biz you can write it off without depreciated it‽

I am not a tax professional and this should not be considered advice.

There are, as I understand it, three means by which you can deduct your vehicle and one other issue. Standard depreciations, bonus depreciation, and section 179 are methods that you could use to depreciate the vehicle. Let me address the other issue quickly. As far as I understand it, If you own the vehicle and use it for business, you cannot both take mileage deduction and vehicle cost deduction. ( https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2021 ).

While everyone touts 179, I'm under the impression that the current tax law using the bonus depreciation method allows you to deduct the entire value of the car in the first year, assuming you qualify of course. ( https://www.irs.gov/newsroom/irs-finalizes-regulations-for-100-percent-bonus-depreciation ).

Three important things. First, I believe this means that the value of your vehicle at the end of the first year, the same year it was put in service, is zero as far as taxes go. If your CT got totaled or you sold it in any subsequent year, if I understand correctly, that would be considered taxable income. Second, I'm under the impression, that if you don't capture that loss through some tax magic, it's gone forever.

Third, and most importantly, I am not a tax professional and this is not advice.

In this video, he mentions "thanks to Trump tax law, it is 100%". It used to be 50% and was bumped up to 100% in the Tax Cuts and Jobs Act.

 

[Mr.Dee]

The model X gross vehicle weight is close to 6800 pounds. I believe the CT will weight more.

There is a good chance the Cybertruck will weigh less than 6K lbs

Looks like the rule applies to gross weight, not actual weight. So almost every truck on the market today would qualify, even something as small as the current Ford Ranger.

 

[Bill837]

The model X gross vehicle weight is close to 6800 pounds. I believe the CT will weight more.

Yep, wifes 2015 Cherokee gets over 6K GVWR. So there's no way a Cybertruck, either a pessimistic 3,000lb payload, comes in under that.

 

[CYBRSMTH]

The model X gross vehicle weight is close to 6800 pounds. I believe the CT will weight more.

CT will be at least 6,000 pounds, probably more. Stainless steel isn’t light. And yes I know that it’s just the panels now and not the whole frame. That’s still made from an alloy of steel and aluminum. Trucks are heavy.

 

[cvalue13]

Discussion of this in this thread, Inc as relates to the un-capped 100% deduction in virtue of having a >6’ bed (subject to many qualifiers)

 

[Crissa]

In the last thirty years, Ford F150 gained a literal ton.

Trucks don't need to be that heavy.

-Crissa

 

[PilotPete]

In the last thirty years, Ford F150 gained a literal ton.

Trucks don't need to be that heavy.

-Crissa

Except for taxes.

 

[Crissa]

Except for taxes.

Ugh. This isn't the fossil fuel industry. They'll sell every one, deduction or no,

-Crissa

Sponsored