Can a new car purchase be considered as business tax write off?

Asked about 1 year ago - 90245

I am thinking to purchase a Tesla all electric car. It cost around $75k. If I for example make $130k a year, can I write off the full 75k for business tax write off?
Also since its all electric, uncle Sam is giving a $7500 tax credit but I am asking if its use for my business, can I write of the whole 75k from my income since its a new car?

Attorney answers (3)

  1. E. Martin Davidoff

    Pro

    Contributor Level 15

    8

    Lawyers agree

    Answered . You can deduct the percentage of your automobile used for business within the limits set forth by the tax law. See IRS publication 463 at www.irs.gov for information on such. Also, note that commuting expenses (driving to and from work) is NOT deductible. If you can afford a Tesla, you can afford to hire a CPA competent to handle this for you. Good luck.

    This answer is provided for general information only. You should seek advice from an attorney or tax professional.
  2. Scott Richard Kaufman

    Pro

    Contributor Level 20

    3

    Lawyers agree

    Answered . You need an accountant not a lawyer.

  3. Pardis Patrick Ashouri

    Contributor Level 17

    3

    Lawyers agree

    Answered . As mentioned by colleagues above, whether the entire amount is or is nor subject to deduction, whether by IRS code section 179 depreciation allowance or otherwise, is a CPA question with whom you need to consult with. Good Luck

    In addition to AVVO's disclaimer, please note that by this answer no attorney client relationship is intended mor... more

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