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