Haupdate
Member
- Joined
- Nov 3, 2022
- Threads
- 4
- Messages
- 13
- Reaction score
- 9
- Location
- Southern Maine/NH
- Vehicles
- Jan/Feb 23 R1T
- Thread starter
- #1
First off: I am not a tax professional. Talk to your CPA.
With the R1T/R1S priced out for 2023 federal tax credits (for those without the contract pre-aug 22) and prices ever climbing, I wanted to remind those self employed individuals about depreciation.
Since the R1T and R1S are over 6k pounds, you can claim the entire purchase amount as a deductible expense in the first year! Then you deduct actual expenses for the years following versus milage (goes on the schedule C).
For example: You buy an R1T for 75k. You can deduct the entire amount in the first year as depreciation. If you are in the 22% tax bracket and use the vehicle 80% of the time for work, you could save $13,200! Remember, its not a credit, but its a nice deduction to be considered.
With the R1T/R1S priced out for 2023 federal tax credits (for those without the contract pre-aug 22) and prices ever climbing, I wanted to remind those self employed individuals about depreciation.
Since the R1T and R1S are over 6k pounds, you can claim the entire purchase amount as a deductible expense in the first year! Then you deduct actual expenses for the years following versus milage (goes on the schedule C).
For example: You buy an R1T for 75k. You can deduct the entire amount in the first year as depreciation. If you are in the 22% tax bracket and use the vehicle 80% of the time for work, you could save $13,200! Remember, its not a credit, but its a nice deduction to be considered.
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