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

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  

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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