This sounds promising! How much paperwork/maintenance is involved with a DAF? And can you recommend any specific providers? I've heard of Fidelity and Schwab having these, but not sure if there are advantages to one over another.

The paperwork is minimal - much easier than setting up a private foundation. It takes about 15-20 minutes to open online, similar to opening a brokerage account. Once it's set up, you just transfer assets in and then make grants to charities whenever you want with a few clicks. I use Fidelity Charitable because that's where my other accounts are, but Schwab and Vanguard are also excellent options. They all have similar fee structures (around 0.6% administrative fee annually plus underlying investment fees). The main difference is minimum initial contribution ($5K for Fidelity, $5K for Schwab, $25K for Vanguard) and minimum grant amounts. I'd go with whoever you already have investment accounts with for simplicity.

Just a quick note on this - the mega backdoor Roth requires specific plan provisions: 1) allowing after-tax contributions (not just Roth), and 2) either in-plan Roth conversions or non-hardship in-service distributions. Many plans don't have both features, especially the second one. Worth calling the 401k administrator to check though!

Thanks for the warning! What's the best way to track all this? Do you use an app or just write it down?

I personally use MileIQ app - it automatically tracks all my trips and lets me swipe right for business or left for personal. Super easy and creates IRS-ready reports. But there are lots of good options like Everlance or TripLog too. The important thing is consistency. The IRS loves to question vehicle deductions, so whatever method you choose, use it religiously. And if you're claiming the vehicle is used 70% for business, your records should actually show approximately that percentage. I've seen too many people claim high business use percentages without the documentation to back it up.

You don't necessarily need to update your operating agreement, but it's not a bad idea to document the vehicle use policy. My accountant had me create a simple resolution authorizing the vehicle purchase that we keep with our LLC records. Basically just states the business purpose of the vehicle, who's authorized to drive it, and how personal use will be handled.

Thanks for bringing this up! My Model Y was $58,500 and I did receive the certificate from Tesla confirming it meets the North American assembly requirements. I also checked and the battery components meet the new criteria as well. I was more concerned about the ownership transition issue since the IRS seems pretty strict about documentation. Sounds like I need to keep all paperwork showing the transition from LLC to personal ownership, plus the dissolution documents for the LLC.

That's great! You're definitely under the $80k limit for SUVs, and having that certificate is crucial. Just make sure when you file that you include Form 8936 (Qualified Plug-in Electric Drive Motor Vehicle Credit) with your personal tax return. One more tip - if your income is over $300,000 (joint) or $150,000 (single), the credit starts to phase out. But based on your situation, it sounds like you should be eligible for the full $7,500 as long as you document the ownership transition properly.

Does the point of sale option work if you're financing? I thought it only applied if you're paying cash for the whole vehicle.

Wouldn't deferring the compensation just delay the inevitable though? You still pay the taxes eventually, right? Is there any actual advantage beyond timing?

Yes, you're just delaying the taxes, not eliminating them. The advantage can be significant though in certain situations. If you're currently in a high tax bracket but expect to be in a lower bracket during retirement, you could save substantially by deferring. Another benefit is tax-deferred growth - the full pre-tax amount grows for you instead of the post-tax amount. For someone near retirement or planning to move to a lower-tax state, deferral strategies can make a big difference. But you're right that it doesn't eliminate taxes, just optimizes when you pay them.

Oh damn, I hadn't even thought about the withholding part. I'm definitely in a higher tax bracket than 22%. I'll check with our payroll department about this. Did your company give you any option to increase the withholding percentage?

23 Omg this just happened to me! I worked 3 jobs last year and ended up owing $600 when I usually get a refund. I was so confused until the tax preparer explained this exact thing.

11 Yeah, it can be a really unpleasant surprise! One way to avoid this in future years is to fill out a new W-4 form at your current job and check the box for multiple jobs, or even request additional withholding. It's better to get a little less in each paycheck than to get hit with a big tax bill in April. It's one of those weird tax things nobody tells you about until you learn the hard way!

8 I tried using that last year and it was so confusing! No explanations of anything, and it doesn't do any calculations for you. Maybe it's fine if you know exactly what you're doing, but for beginners I really wouldn't recommend it.