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Level 1
October 28, 2022
Question

168(k) deduction for a Tesla X

  • October 28, 2022
  • 2 replies
  • 13 views

I have a client that bought a 2022 Tesla X in November 2021.  She uses it 100% for business.  I am getting confusing info as to how (and how much) she can deduct from her taxes.  I initially looked at a Section 179 expense, but I read that a Section 168 would be better.  Can I take a Section 168 expense for my client?  If so, how do I do it on the Pro Series software?

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2 replies

Level 15
October 28, 2022

When you enter the vehicle on the vehicle worksheet, the checkbox for "Economic Stimulus" is what allows Bonus depreciation (it should highlight as a pink error until you check a box).

dkh
Level 15
October 28, 2022

I'm going to nit-pick....100% business use - really ??   Is there another vehicle this taxpayer uses for their personal transportation?