Tesla Model X Section 179 and allowed Special Depreciation

Forum|Forum|3 years ago
February 9, 2023
1 reply
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I bought a Tesla Model X on Nov 19, 2022 for $124,772.

It is over 6000 lbs and I use it 55% for business. The total write off is $68,625.

I set it up as an asset under "G - Tools, equipment"

I read that I can only take a section 179 deduction under the SUV Section of $26,200 and the rest should be Special Depreciation Allowance so I took a section 179 in the amount of $25,000 and Special dep allow amount of $43,625.

Did I do it right?

Best answer by DavidD66

It would be right if you had bought tools or equipment, but not a vehicle. It's a bit counter intuitive, but you enter a vehicle by starting in the asset entry section of TurboTax Online. Instead, start with "Vehicle" expenses. You will be asked about the make and model, type of vehicle (e.g. SUV over 6,000 lbs). Go through the interview, and when yo get to the screen with "Based on the miles you drove, your standard mileage deduction... is: $xxx. You will then be given the option of entering your actual expenses - mark that option and click on "Continue". Continue with the interview. When you get to the page with "How much do you want to deduct for the business use of this vehicle?" Leave the Section 179 Expense blank, and mark the button for Special Depreciation Deduction. This will give you the maximum deduction.

D

DavidD66Answer

It would be right if you had bought tools or equipment, but not a vehicle. It's a bit counter intuitive, but you enter a vehicle by starting in the asset entry section of TurboTax Online. Instead, start with "Vehicle" expenses. You will be asked about the make and model, type of vehicle (e.g. SUV over 6,000 lbs). Go through the interview, and when yo get to the screen with "Based on the miles you drove, your standard mileage deduction... is: $xxx. You will then be given the option of entering your actual expenses - mark that option and click on "Continue". Continue with the interview. When you get to the page with "How much do you want to deduct for the business use of this vehicle?" Leave the Section 179 Expense blank, and mark the button for Special Depreciation Deduction. This will give you the maximum deduction.

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