Vehicle Tax Deduction: 8 Cars You Can Get TAX FREE - Section 179

so the vehicle tax deduction can basically  allow you to purchase your dream car essentially   tax-free of course you have to do this in a very  smart and legal way to successfully pull this off   one of the biggest pieces of advice that we shared  on this channel is that you should buy a vehicle   that weighs over 6 000 pounds because you're able  to write it off 100 in the first year through   accelerated depreciation now i don't know about  you but 6 000 pounds sounds like a lot of pounds   so i decided to do some research and look  at some vehicles that someone could buy   if they wanted to qualify for the vehicle  tax deduction in 2021 so in this video   i'm going to show you about eight cars  that i found and you can write off 100   using the vehicle tax deduction and combining  it with section 179 stay tuned okay so before   we dive into the list let me quickly explain what  the vehicle tax deduction is so if you operate a   business or if you're self-employed then the  tax code is set up in a way that allows you   to write off business vehicle expenses and it's  cost the two methods that you can do this with   is the standard mileage rate deduction which  calculates how many business miles you've driven   and then gives you a deduction based on those  miles driven and then you have the actual expenses   deduction which allows you to write off the  direct cost of the vehicle including depreciation   gas insurance and even registration fees now if  you're trying to get a vehicle basically for free   then you want to take advantage of accelerated  depreciation through the tax code section 179   accelerated depreciation basically allows you to  fast forward your expected losses faster which can   be helpful during a tax year where you made a lot  of money and you likely have to owe the government   a lot of money for that so for example you buy  a business vehicle for fifty thousand dollars   and with normal depreciation you would take about  ten thousand dollar deduction each year over about   five years well with accelerated depreciation  you can take the fifty thousand dollars   and accelerate the loss in the first year hey  sean look i can accelerate my own wins and losses   okay kind of like that but accelerated  depreciation is extremely powerful because it can   wipe out all of your taxable income and help you  buy a car without paying any taxes on your income   which basically means you're getting a car tax  free which for some people would be a savings   of over 40 percent off now the one stipulation of  taking accelerated depreciation on a vehicle tax   deduction is that the vehicle must weigh over six  thousand pounds and that weight needs to be gvwr   or gross vehicle weight rating which is the  max loaded weight of your passengers your cargo   and the total size of the vehicle so if you have  a business and you need a vehicle for business   and you need more deductions you've got to take  advantage of the vehicle tax deduction in general   all right so that's just a quick quick quick  overview of the vehicle tax deduction but if   you want a deeper dive then make sure you check  out my video on how to write off your dream car in   that video i basically break down everything that  you need to know all right now let's go ahead and   jump into the list of cars in 2021 that weigh over  6 000 pounds that qualify for section 179 vehicle   tax deduction which allows you to celebrate the  depreciation and by the way this list is in no   particular order so let's go ahead and start off  with number one the 2021 tesla model x i love   this car and i'll probably get it whenever i can  strategically use the vehicle tax deduction again   so for the 2021 tesla model x vehicle the gvwr  the gross vehicle weight rating comes in weighing   6788 to 6878 pounds which easily qualifies for  accelerated depreciation the starting price is   and 79 dollars and of course you can upgrade  it where it will cost even more than that   this vehicle can give you an estimated seventy  nine thousand nine hundred and ninety dollars as   tax write-offs for your business and i've seen  some youtubers using this car for business so   definitely check this out number two you have the  2021 mercedes-benz g-class aka the g-wagon this is   also a very trendy car and often talked about in  a lot of pop and hip-hop music so the 2021 g-wagon   gvwr comes in weighing 6949 to 7056 pounds and  again it easily meets our criteria for section 179   so this vehicle if accelerated will give you  an estimated 131 750 tax write-off so i've seen   influencers like grant cardone riding around his  g wagon and i'm willing to bet that they're using   this as a vehicle tax deduction even in 2021  now before i go on with the list if you're new   here welcome to the channel i'm sean with life  accounting the accounting company that saves   people from high taxes and low profits if you're  enjoying this video or getting any value so far   please hit that like button and share this  on twitter linkedin facebook wherever you   can so more people like you can find out  about this incredible vehicle tax deduction   also support our channel by subscribing and also  so you don't miss out on new videos that we drop   each and every week here on our channel so keep  it locked in all right so number three the 2021   porsche k9 we all know the prestige that comes  with the name porsche you just think about luxury   and it also qualifies with a gvwr of 6329 to 6471  pounds this vehicle can give you an estimated 67   500 and accelerate it right off all right number  four the 2021 bmw x5 similar to the porsche the   bmw x5 comes in making weight at 6162 pounds so  another great option for anyone who's looking   for a vehicle for business and also gives you an  estimated fifty nine thousand four hundred dollars   as a tax deduction all right coming in at number  five you have the 2021 chevy suburban now this   vehicle is in celebrity territory you've probably  seen celebrities getting picked up in their   suburbans because the vehicle is very spacious  it's safe and you can add armor to it which makes   it even safer and you get a big fat tax right off  so the chevy suburban weight easily qualifies for   section 179 deduction with a gvwr of 7 500 to  7 700 pounds the chevy suburban would also give   you an estimated 51 500 tax write-off but that's  not a lot for celebrities who are making millions   so you will find that they upgrade these suburbans  to be bulletproof and sometimes that will drive up   the cost up to 250 thousand dollars now that's a  healthy tax write-off for somebody making millions   number six you have the gmc yukon xl the  competitor to the suburban majority of the   same benefits just a different brand this gwvr  is the same as the suburban coming in at 7 500   to 7 700 pounds giving you an estimated  accelerated tax write-off of 53 thousand dollars   number seven you have the range rover another  stylish and safe vehicle so sgw vr meets the   criteria for accelerated depreciation of a weight  of six thousand eight hundred and thirty four   to seven thousand seventy seven pounds number  eight i got the toyota 4runner you have a very   affordable and reliable vehicle with the toyota  4runner my first car was a toyota so it definitely   had to make my list its gw vr is between 6100  to 6300 pounds which means it also qualifies   for accelerated vehicle depreciation and that  will give you an estimated tax write-off of 36   765 dollars all right so there you have it before  i end this video i want to mention that if you   sell your car for a gain then you have to pay  back depreciation this is called depreciation   recapture so while this is a very good tax benefit  don't get carried away trying to go even further   by doing something like taking depreciation  and then trying to resell it afterwards okay   you're gonna end up with a very big problem  and a very big loss if you haven't seen my   video on how to write off your dream car make  sure you watch that next or check out some of   our other attacks videos on our channel i'm sean  thanks for watching and i'll see you there you

Channel: LYFE Accounting

Views: 255,760

Keywords: vehicle tax deduction, vehicle tax deduction 2023, vehicle tax deduction 2022, how to write off car, section 179 vehicle, vehicle section 179, bonus depreciation vehicle

Id: 1NKfdORdeDk

Length: 9min 9sec (549 seconds)

Published: Wed Apr 28 2021