Hi,
I am planning for my end-of-year taxes and thinking about making a strategic car purchase under section 179.
My current situation:
1. W2 employed - 150k and already taxed
2. Own LLC A - will make 1-2k profit this year pass through single-member
3. Own LLC B - will make 20k profit this year pass through single-member
4. I am also part of a partnership where I will receive a K-1 and profits of 50k-100k this year
5. Stocks and crypto - maybe 20-40k profits
What I would like to do:
I would like to purchase a Tesla X which is $75,000-80,000 used on a loan and ideally get tax benefit using section 179 and the fact that Tesla X is classified as a large vehicle. This would be used for LLC A mostly which only profits 1-2k this year.
Question:
Is it possible to use section 179 for this car purchase? If so, what is the best strategy and what does the math look like?
Own stab at the question and scenario:
My purchase price for the Tesla X is say $70,000 for 50% use in LLC A which is a single-member LLC pass-through entity that has profits of $1-2k this year. During the purchase, I will use a loan for $60,000 of the purchase value and $10,000 down.
I could then use section 179 to deduct $25,000 for vehicle purchases. Bonus depreciation brought into year 1 would be $60,000 (not sure how to get this number). The interest deduction is say $400.
Then 25,000+60,000+400 = $85,400. Then $85,400 *35% personal tax rate = $29,890 deduction.
Does this $29,890 apply to all my other income like K1, LLC B, W2?
