A taxpayer owns a Tesla, model S,$,$ which had a purchase price of $80$80$K on March $1,2020.$ The car was put into service on that date, and the taxpayer elected to use the standard mileage deduction. The taxpayer has a W−2$\mathrm{}$ job approximately $40$ miles from home, round trip, and drives the vehicle into the office $4$ days a week. Additionally, the taxpayer has an interior design service as a sole proprietorship. The interior design jobs often require several trips to the clients home, which is often over 100$\mathrm{}\mathrm{}$ miles one way, but only 60$60$ miles from their W−2 office. For tax year 2022$\mathrm{}\mathrm{}\mathrm{}\mathrm{},$ the taxpayer drove $4200$ miles for the interior design business. Is the following statement true about this scenario?

a)$)$ For tax year 2022$\mathrm{}\mathrm{}\mathrm{}\mathrm{},$ the taxpayer can take Section 179$\mathrm{}\mathrm{}\mathrm{}$ depreciation of $19200$\mathrm{}\mathrm{}\mathrm{}\mathrm{}\mathrm{}$

b)$)$ The depreciation expenses on the Tesla will be capped at $18$18$K for tax year 2022$\mathrm{}\mathrm{}\mathrm{}\mathrm{}$

 

 

Answer rating: 100% (QA)

The question asks whether the following two statements are true for a taxpayer who purchased a Tesla ... View the full answer