As some of you are aware from previous threads here and on TMC and Reddit, because the Model X has a weight (GVWR, which is printed on a sticker on inside of frame on driver's door) of greater than 6000 lbs, it qualifies as a commercial heavy-duty vehicle, not as a passenger car. As a result, IF YOU TAKE DELIVERY (not place order but actually RECEIVE and USE the car) in 2017 (even as late as December 31, 2017), you get to depreciate a massive amount of the car's purchase price.
There is a great article at: https://www.mileiq.com/blog/section-179-vehicles-deduction/
There are more articles on this at: http://insideevs.com/tesla-model-x-gvwr-6768-pounds-vehicles-qualifies-2... and http://www.latimes.com/business/autos/la-fi-hy-tesla-tax-break-20151013-...
The Model S is under 6000 lbs GVWR, so it doesn't qualify.
Per the article:
You can obtain a substantial first-year deduction if your business car isn’t a “passenger vehicle.”
Example: Sheila pays $100,000 for an SUV [Average price of a Model X] with a gross loaded vehicle weight of 7,000 pounds. Because it weighs more than 6,000 pounds, it is not a “passenger automobile.” Yet, it is subject to the $25,000 limit on the Section 179 deduction for SUVs. Sheila uses the SUV 100% of the time for her travel guide business. She may deduct the following amounts for 2014 [holds true for 2017 as well, when the 50% bonus depreciation will cease to exist]:
Section 179 Deduction $25,000
50% Bonus Deduction $37,500 (50% of the $75,000 basis)
Regular Depreciation $7,500 (20% x %37,500 remaining basis)
Sheila can depreciate the remaining $30,000 of the $100,000 over the next several years using regular depreciation.
This seems like a great deal for people who want to buy heavy (and expensive) SUVs. Keep in mind, the deduction is proportional to the amount of time you use the vehicle for business. If Sheila used the SUV 40 percent of the time for personal, she’d only receive a $42,000 deduction for the year.
To qualify for the Section 179 vehicle deduction and bonus depreciation, you must use it for business more than 50 percent of the time. This is true for the full five-year depreciation period that applies to vehicles. If your use dips below 50 percent during any of that five-year period, you’ll have to repay your deduction and bonus depreciation. That’s why it’s vital to track your business mileage, no matter what method you’re using to take a deduction."
I called my tax attorney and was told that if I take delivery near the end of 2017 and am careful to use the car SOLELY for business use, as a small business owner, I could legally take 100% business use on my taxes, or reduce that perfecta accordingly if I do use it for personal things here and there.
So if you're on the fence, this is a great time to order it because you would need a couple months of lead time to receive the car (unless you purchase Inventory car) and of course some time to consult your tax adviser. You'll get yourself (rather, your business) a nice Christmas gift, save on gas and maintenance, and enjoy the thrill of a Tesla.
Happy to discuss with anyone -- you can PM me here or email me hdhemmati at gmail dot com. And also happy to privately send you a referral code if you need one, and can introduce you to an all-star OA here in Los Angeles area who can help you find the ideal Model X. Happy shopping!