Registering Taycan in a LLC in USA

[dickp]

Any US Taycan owners having done or looking at registering their Taycan in a MT LLC? I know several folks that have done it for exotic cars & RV's. But I'm not sure how to get the Fed Tax EV Credit over to my personal tax return. I am not looking for info. on how to set up the LLC, there are several Cos. that can take care of all those details.

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[Artman]

Not sure about the tax credit but with a GVW over 6,000 lbs, it qualifies for accelerated depreciation

 

[dickp]

Not sure about the tax credit but with a GVW over 6,000 lbs, it qualifies for accelerated depreciation

Thanks, but not interested in using the Taycan for business tax purposes. Just registering it out of State. This is an involved issue and requires a lot of study and help from a company familiar with the details.

 

[kort]

Not sure about the tax credit but with a GVW over 6,000 lbs, it qualifies for accelerated depreciation

the taycan doesn't appear to qualify

 

[kort]

Thanks, but not interested in using the Taycan for business tax purposes. Just registering it out of State. This is an involved issue and requires a lot of study and help from a company familiar with the details.

maybe seeking professional legal/accounting advice would be wise for such a complex issue.

 

[Artman]

the taycan doesn't appear to qualify

 

[Kayone73]

Not sure about the tax credit but with a GVW over 6,000 lbs, it qualifies for accelerated depreciation

I spoke to my CPA and was told if a business owner (LLC, S Corp, etc) were to use the IRS Section 157 code loophole for full depreciation write-off of heavy vehicles thru their business income, then trying to double dip and apply for the $7500 Federal EV tax credit may be a bad idea and a great way to invite an IRS audit.

Just FYI.

 

[Kayone73]

the taycan doesn't appear to qualify

How so, the Taycan has a GVWR = 6200 lbs and I checked with my CPA who looked over the tax code and says it appears to qualify, can you please provide the source that says otherwise?

 

[kort]

How so, the Taycan has a GVWR = 6200 lbs and I checked with my CPA who looked over the tax code and says it appears to qualify, can you please provide the source that says otherwise?

ok, the data I saw says the taycan is under 5k lbs.

 

[Artman]

With a GVW of

ok, the data I saw says the taycan is under 5k lbs.

Gross vehicle weight is the requirement, not curb weight.

 

[kort]

With a GVW of


Gross vehicle weight is the requirement, not curb weight.

ok

 

[Kayone73]

ok, the data I saw says the taycan is under 5k lbs.

Nope you're confusing curb weight with 'Gross Vehicle Weight Rating' GVWR (fully loaded with fluids, passenger, cargo etc) which the tax code loophole is based on.

Completely dry and empty of everything the Taycan sedan does weight around 4600-5100 lbs curb weight, but the GVWR = 6100-6300 lbs, so we owners are good.

Ironically the heaviest trim Tesla Model S only had a GVWR of 5995 lbs ? so just barely misses that 6000 lb cutoff.

This may change with the upcoming S Model Plaid, that thing has to weigh more with the larger battery pack. ?

 

[ithinkmac]

Just having the >6k lbs GVWR does not make it quality for 179. It has to be categorized as a truck/SUV. If your VIN does not indicate that's a truck, it does not qualify.

You can still write off operational expenses for your business needs, but it cannot do accelerated depreciation and/or bonus depreciation under Section 179. Of course, I'm not CPA, so I could be mis-interpreting information, but that's the info I based on for the past decade or so.

I'm hoping the CT will be categorized differently (but I doubt it).

-ThinkMac-

How so, the Taycan has a GVWR = 6200 lbs and I checked with my CPA who looked over the tax code and says it appears to qualify, can you please provide the source that says otherwise?

 

[andrewket]

Any US Taycan owners having done or looking at registering their Taycan in a MT LLC? I know several folks that have done it for exotic cars & RV's. But I'm not sure how to get the Fed Tax EV Credit over to my personal tax return. I am not looking for info. on how to set up the LLC, there are several Cos. that can take care of all those details.

Let us know if you find a reputable company. There used to be a few “automobile trusts” that you could join, but last I looked they were all forced to shut down. I considered jointly purchasing my car with a family member who lives in NJ which enjoys no sales tax on EVs and reasonable annual fees, or creating my own trust for this purpose. In the end, I decided to just bend over and take it. It impacts insurance and the ability to claim the $7500 credit.

 

[Kayone73]

Just having the >6k lbs GVWR does not make it quality for 179. It has to be categorized as a truck/SUV. If your VIN does not indicate that's a truck, it does not qualify.

You can still write off operational expenses for your business needs, but it cannot do accelerated depreciation and/or bonus depreciation under Section 179. Of course, I'm not CPA, so I could be mis-interpreting information, but that's the info I based on for the past decade or so.

I'm hoping the CT will be categorized differently (but I doubt it).

-ThinkMac-

Thanks for the input, I wondered about it as well, I actually am ordering a Cross Turismo and wondering if the VIN will recategorize it as a crossover due to its' lifted' status.

For example this CarPros article written in 2020 explicitly states 'SUVs and Crossovers' with a GVWR > 6000 can apply for the accelerated depreciation.

https://www.carprousa.com/2020-Tax-Code-179-For-Business-Owners-&-The-Self-Employed/a/1622

But either way, while the common understanding is the section 179 tax code is for trucks/SUV only, I think that is only because when it was written (pre BEV existing) that only vehicles typically categorized as trucks or SUVs could typically exceed this GVWR limit.

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