100% write off First Year!!?

[Cybertruck 1974]

OK so I heard from a financial advisor if the CT weighs more than 6k lbs and has a bed longer than 6 feet and it's used for business needs the owner can write the vehicle off 100% first year. Can anyone confirm?

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[scottf200]

OK so I heard from a financial advisor if the CT weighs more than 6k lbs and has a bed longer than 6 feet and it's used for business needs the owner can write the vehicle off 100% first year. Can anyone confirm?

Have never heard of the 6 ft bed rule.

See other thread with info.
https://www.cybertruckownersclub.co...es-for-sec-179-tax-deduction.2735/#post-43674

 

[Cybertruck 1974]

Have never heard of the 6 ft bed rule.

See other thread with info.
https://www.cybertruckownersclub.co...es-for-sec-179-tax-deduction.2735/#post-43674

 

[Cybertruck 1974]

Businesses have ongoing incentives to acquire and install capital equipment. The Tax Cuts and Jobs Act of 2017 made significant changes to both Section 179 and bonus depreciation. These changes continue to be in effect for 2024 and when used together may allow businesses to deduct up to 100% of capital purchases. However, it will only be 100% if the amount of the equipment is under the phase-out threshold and can be expensed solely under Section 179. If it's over the limit and/or threshold, bonus depreciation will kick in, which is only 60% for 2024.

 

[Adrenalinwill]

Sec179 applies to the Cybertruck and also to G Wagons, Range Rovers, Cadillac Escalades, suburban, but full depreciation deduction was adjusted in n 2022 so you’ll have to utilize an accelerated deprecation or bonus depreciation to write off full amount. My question is how to defer or eliminate the depreciation recapture at the end of life.

 

[Roger@CYBERTRUCKco]

Sec179 applies to the Cybertruck and also to G Wagons, Range Rovers, Cadillac Escalades, suburban, but full depreciation deduction was adjusted in n 2022 so you’ll have to utilize an accelerated deprecation or bonus depreciation to write off full amount. My question is how to defer or eliminate the depreciation recapture at the end of life.

you aren’t penalized after year 5, then sell to yourself at reasonable discount. You’ll have profit from the sale but not penalty.

 

[sirozha]

you aren’t penalized after year 5, then sell to yourself at reasonable discount. You’ll have profit from the sale but not penalty.

Explain, please.

1. How much is the one-time write-off on the Cybertruck for 2024?
2. What's the accelerated schedule for the next four years (year 2 through year 5)?
3. What happens if, for example, after 5 years $60,000 has been written off out of the $85,000 of the purchase price? So, the remaining value is $25,000. If I sell this truck to myself for say $25,000 after year 5, and the remaining (after the depreciation) value is $25,000, what's the company's profit?

 

[Brandon708]

It does qualify for the 179 deductions but I think its 60 or 70% this year. Hopefully the new administration will bring it back to 100% next year.

 

[Roger@CYBERTRUCKco]

Explain, please.

1. How much is the one-time write-off on the Cybertruck for 2024?
2. What's the accelerated schedule for the next four years (year 2 through year 5)?
3. What happens if, for example, after 5 years $60,000 has been written off out of the $85,000 of the purchase price? So, the remaining value is $25,000. If I sell this truck to myself for say $25,000 after year 5, and the remaining (after the depreciation) value is $25,000, what's the company's profit?

Every year changes, ask your CPA to take care of it for you based on this year’s tax law which I have not researched.

At the end of year five it will be completely depreciated, when you sell it to yourself, company will profit from the sale of asset.

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