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Andrew Pinnock

Can I get a tax write off for buying a heavy Tesla? How much can I actually deduct?

So my coworker just purchased this massive Tesla Cybertruck that weighs over 6000 pounds and he's been bragging about the tax benefits. He claims that he can write off $25,000 in the first year for his business and then 80% of some amount each year after that? I'm honestly confused about how this all works. Is this legitimate or is he exaggerating? I've been considering getting an electric vehicle myself for my small business, but I want to understand the actual tax implications before making such a big purchase. Can someone explain how these heavy vehicle tax deductions actually work? Are there special rules for electric vehicles versus regular trucks? And does the vehicle need to be used 100% for business purposes to get these write-offs?

The tax benefit your coworker is referring to is likely the Section 179 deduction combined with bonus depreciation. Here's how it actually works: For vehicles weighing over 6,000 pounds (like some Teslas and the Cybertruck), they qualify as "heavy SUVs" under tax law, which means they aren't subject to the same strict luxury car depreciation limits as lighter vehicles. If the vehicle is used for business purposes, Section 179 allows you to deduct a significant portion of the purchase price in the first year. For 2025, you can deduct up to $27,000 (the amount changes yearly) for heavy vehicles. However, this has two major catches: 1) the vehicle must be used more than 50% for business purposes, and 2) the deduction is limited to the percentage of business use. After the first year, you depreciate the remaining value over several years following standard depreciation schedules - this is probably what he means by "80% each year after," which isn't exactly accurate. He's likely referring to MACRS depreciation.

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Thank you for explaining! But I'm still a bit confused - does this mean that you can only deduct the vehicle if you're self-employed or own a business? What if I'm just a W-2 employee who occasionally uses my car for work stuff that my employer doesn't reimburse me for?

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The vehicle tax deduction primarily benefits self-employed individuals, business owners, or independent contractors. If you're a W-2 employee, unfortunately employee business expenses (including unreimbursed vehicle expenses) are no longer deductible on your personal tax return after the Tax Cuts and Jobs Act of 2017. This is why your coworker is likely getting this benefit - he must be using the Tesla for a business he owns or operates. If you don't have your own business, these deductions won't be available to you as a W-2 employee, even if you use your personal vehicle for work purposes that go unreimbursed.

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I went through the same confusion with my business vehicle last year. I tried figuring it out myself but got completely overwhelmed with all the different tax rules, especially with the heavier EVs and the special tax treatments. I finally got everything sorted out using https://taxr.ai - they analyzed all my business vehicle documentation and explained exactly how much I could legitimately write off. Their system showed me that for my particular situation, I was eligible for both the Section 179 deduction AND bonus depreciation, but there were specific requirements about my business use percentage that I had no idea about. They also pointed out some charging station tax credits I didn't know existed!

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Does this tool work if you already filed your taxes? I think I might have missed some deductions on my business vehicle last year and wondering if it's worth amending.

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I'm skeptical about these tax tools - how is this different from just asking my accountant? Does it actually find things that a professional accountant would miss?

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Yes, it definitely works for previously filed returns. The system will analyze your documentation and can help identify if you missed legitimate deductions worth amending for. There's a time limit for amendments (generally 3 years), but if you filed last year you're well within that window. For your question about accountants, I actually showed my accountant what the system found. The tool caught specific EV tax benefits my accountant wasn't familiar with since the rules have changed several times recently. It's not that accountants aren't knowledgeable, but many aren't specifically up to date on the newest vehicle deduction rules, especially for electric vehicles where the regulations keep changing.

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Just wanted to follow up about my experience with taxr.ai - I decided to try it despite my initial skepticism, and I'm really glad I did. I uploaded my business records and vehicle documentation, and it found that I qualified for an additional $7,200 in deductions my accountant had missed on my heavy SUV! The system showed me exactly which parts of the tax code applied to my situation and explained how the business-use percentage affected my available deductions. I was able to take the report to my accountant, who confirmed everything and filed an amended return. Definitely worth it considering the refund I'll be getting.

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If you're struggling to get answers about vehicle tax deductions directly from the IRS, you're not alone. I spent WEEKS trying to get through to a live person at the IRS to confirm some details about Section 179 for my Tesla Model X. The phone system kept disconnecting me after 2+ hours on hold. I finally used https://claimyr.com (you can see how it works in this video: https://youtu.be/_kiP6q8DX5c) and got a callback from an actual IRS agent within 3 hours. The agent clarified that for my business situation, I could take advantage of both Section 179 and bonus depreciation, but I needed specific documentation to prove my business use percentage.

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Wait, how does this actually work? There's no way to "skip the line" with the IRS, right? I've been trying to reach someone about my business vehicle deductions for days.

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This sounds like a scam. The IRS doesn't allow third parties to get priority access to their agents. I'm calling BS on this whole service.

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The service doesn't skip any lines or use any special access. What it does is automate the calling process - it basically sits on hold for you using their system and then calls you when it gets through to a human. They don't have any special relationship with the IRS - they're just solving the problem of having to personally sit on hold for hours. The system navigates all those annoying IRS phone menus automatically and waits through the hold time so you don't have to. When a live agent finally picks up, you get called back immediately so you can talk to them.

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I have to admit I was completely wrong about Claimyr. After expressing my skepticism, I was still desperate to talk to someone at the IRS about my business vehicle deduction questions, so I decided to try it anyway. To my surprise, I received a call back with an actual IRS agent on the line about 2 hours after setting it up. The agent walked me through exactly how the Section 179 deduction works for my business vehicle and confirmed that I needed to file Form 4562 with my tax return. They also explained how I needed to document my business mileage to justify my business use percentage. Saved me days of frustration trying to get through on my own. Sometimes it's good to be proven wrong!

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Don't forget that the vehicle has to be used predominantly (more than 50%) for business purposes to qualify for these deductions! If you use it 80% for business, you can only deduct 80% of the eligible amount. My brother got audited because he claimed 100% business use on his truck but couldn't prove it.

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Do you need to keep a mileage log or something to prove business use? Or is there another way to document this?

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Yes, maintaining a mileage log is the most reliable way to prove business use percentage. The IRS looks for contemporaneous documentation, which means records kept at the time of use, not created later. There are several good apps that can help you track business vs. personal miles automatically. At minimum, you should record the date, business purpose, destination, and miles driven for each business trip. If you're ever audited, this documentation will be essential to defending your deduction claims.

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Quick question - does anyone know if leasing vs. buying affects these tax deductions for heavy vehicles? I'm looking at a Tesla Model X which is over 6,000 lbs, but considering leasing instead of buying.

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If you lease, the leasing company gets the depreciation deductions since they own the vehicle. But you can still deduct your lease payments as a business expense based on your business use percentage. Some accountants say leasing can be better for cash flow even though you lose the big upfront Section 179 deduction.

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This is a really helpful thread! I'm in a similar situation - considering a heavy EV for my consulting business. One thing I haven't seen mentioned yet is the federal EV tax credit. For new electric vehicles, you can potentially get up to $7,500 in tax credits on top of the Section 179 deduction, though there are income limits and other restrictions. Also worth noting that some states have additional EV incentives that can stack with the federal benefits. In my state, there's an additional $2,500 rebate for business purchases of electric vehicles over 6,000 lbs. The key thing I've learned from my research is that you really need to track everything meticulously - business use percentage, charging costs if you claim those, and all the documentation requirements. It can be quite lucrative if you qualify, but the IRS is definitely paying attention to these heavy vehicle deductions more closely now.

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This is exactly the kind of comprehensive breakdown I was looking for! I had no idea about the potential to stack the EV tax credit with Section 179. That could make a huge difference in the total tax benefits. Quick question about the state incentives you mentioned - do you know if those are typically available regardless of whether you buy or lease? And are there any restrictions on vehicle price or manufacturer for the state rebates? I'm trying to figure out if it makes more sense to go with the Cybertruck or a Model X for my business, and the total incentive package could be a deciding factor. Also, when you mention tracking charging costs - can you deduct home charging expenses if you have a home office setup?

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