Hi. I am looking to purchase a pre-owned EV vehicle for my LLC and take advantage of the $7,500 EV tax credit available under IRC 45W, the Commercial Clean Vehicle Credit. Additionally I would like to Expense (IRC 179) or take 100% bonus deprecation (IRC 169) of the EV vehicles full purchase price in the same year. The entity structure is a New Mexico Holding Company that has 100% ownership of a Texas LLC. - Below are a few questions:
1. When does the EV Credit for Commercial vehicles expire? As I understand it, EV vehicles need to be placed in service by Sept 30th, 2025 to be eligible.
2. As this will likely create a Net Operating Loss (NOL), can I apply the NOL against my W2 income on my joint return if I materially participate in my TX LLC by passing the 100hr and more than anyone else test? - The vehicle will be purchased by my single member, Texas LLC and both the New Mexico Holding Company and Texas LLC will be treated as disregarded entities for tax filing purposes.
3. If I am able to use the NOL in my Texas LLC to offset W2 related taxes on my return, what forms do I need to use to take advantage of these credits and is their a way I can use my prior year's return on Turbo Tax to model what my projected tax saving would look like?
4. When taking 100% bonus depreciation, do I need reduce my basis for the EV vehicle by the 7,500 EV credit? - Asking because the GVWR for the EV vehicle I am considering is under 6,000 lb and will be capped at $20,400 bc of IRC 280F (Luxury Auto Deprecation Cap). If I have to count the EV Credit against my basis, then I can theoretically purchase a vehicle with a basis of $27,900 and still take 100% bonus depreciation since my basis after EV credit is 20,400 right?
5. Under IRC 45, the commercial EV credit, is the lower of either 30% of basis for EV vehicle, incremental cost for a equivalent ICE (Internal Combustion Engine) vehicle, or $7,500.- Is the incremental cost safe harbor amount of 7,500 still applicable or do I need to have support for a equivalent ICE vehicle?
6. As I will likely have a net operating loss, when/how do I use IRC 179(expensing) vs IRC 168 (bonus depreciation) for the EV vehicle to maximize tax saving by carrying net operating loss against my w2 income on my personal return?
