DOES PLUG IN ELECTRIC VEHICLE QUALIFY FOR DEPRECIATION AND SECTION EXPENSE DEDUCTION 179

[tax1320_]

DOES TELSA  MODEL 3 VEHICLE QUALIFY FOR DEPRECIATION AND SECTION 179 EXPENSE DEDUCTION

[sjrcpa]

Depreciation - yes to the extent of business use.

Section 179 - business use % if business use is >50% and subject to auto limits.

[tax1320_]

Thank you, I figured it was and just wanted to make sure that electric vehicles are qualifier for depreciation and section 179 expense deduction.

[G8keapor]

The GVWR must be over 6000lbs. I know the model x qualifies but I don’t believe the 3 does. Someone that knows what the GVWR of the vehicle can always comment.  I will say though it is possible because due to the inefficiencies of batteries caused by excessive weight the battery might just be heavy enough. The kicker of these rules is I have a bolt EUV that I use 100% for picking up blinds for small jobs and performing estimates but it falls short of the 6k but someone can claim the section 179 on their Porsche Cayenne or a slew of other high end luxury models that are likely fraudulently being classified for business.  

EDIT. Vehicles in under 6000lbs GVWR have a lesser base deduction and don’t allow for as much in bonus depreciation. 

[abctax55]

@G8keapor 

1- two year old post.

2- You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

[G8keapor]

@abctax55  I think you may have misunderstood my post because I added some anecdotal personal experience with section 179 and vehicles. Also this response to you isn’t meant to be rude or combative.  I speak very much matter of fact so it can unintentionally come off that way  

1. As to the age of the post that is irrelevant in this case as the post still provides relevant information as section 179 hasn’t changed since prior to this being posted.  Plus it’s one of the top google results.

  2. I’m not looking for support.  I was adding to the response to the question to provide info for other professionals that may not understand section 179 and vehicles. The full base deduction starts at 6000 GVWR (general vehicle weight rating.) and goes through 14000 GVWR.  Something I forgot to mention in my original response is vehicles under 6000 only allow for a 10k deduction and a lesser maximum of bonus depreciation. This is something to note as the question revolves around a vehicle that is likely under 6000lbs GVWR.  

I thought it important to add that as the initial answer was extremely vague and could have resulted in an audit if the wrong level of deduction was applied.  I may not be a “tax professional” but I have been doing my own taxes for my business for over 20 years and I have been making section 179 deductions for nearly as long.  My OCD commands me to actually read up on everything applicable or potentially applicable to my  tax filings.   That is no easy feat either which is evident by the inability of any tax professional to know it all in regards to tax law. (No, I am not implying that I do either.)

Anyway I appreciate the response and will try and keep my initial replies more directly to the question to avoid this sort of confusion in the future.