Easy Money

I have in the past deducted the corvette as a luxury car. But has anyone deducted the gas guzzler "tax" on the Z06 and or ZR-1 on an income tax return ??

HPT

No.

Newdude

LOL wut?

spearfish25

I didn't know we can deduct tax from our taxes. I'm going to deduct all my sales tax i paid next year.

mikelj

Not deductible on your personal taxes, but if you want to list it as a business vehicle and it is owned by the business entity, it could be. You just have to justify to an IRS audit why you need a new ZR1 as a business vehicle.........

smurfmacaw

Federal excise taxes pretty much aren't deductible for individuals. If you are looking to see what an audit is like it is probably a pretty easy way to find out.

RoketRdr

What he said. Its a federally mandated excise tax which of course isn't deductible. It WILL bring an IRS audit if you try it. You won't like the end result because they could file against you for attempted tax fraud. You're not a politician so the rules DO apply to you.

dmaxx3500

I thought the ''gas guzzler '' tax went away years ago

william wyatt

No that was the LUXURY TAX that was done away with.

NASTYC7

My auditor.. Ya.. Uggg... Wasn't too pleased with the Z06 on the company ledger, looked at me a little cross eyed like I was slipping a personal car in on the company . I slid over my phone book.. Call anyone of my customers or vendors and ask them what I drive... It's my calling card.. Has been for years. I really do drive it more for company than personal and yes personal miles were listed.

I actually got audited for my company miles listed. They thought it was excessive but turned out I kept perfect records..

Easy Money

So I guess the answer would be yes.

Based on your experience a car owned by my business would make the gas guzzler tax a deduction in that it is included in the cost of the car which you can then depreciate ...over albeit an extended length of time when defined as a luxury car. Just because a business investment may be viewed as unwise by some should not preclude it from the definition of the tax code.

fleming23

Actually....the tax code precludes a luxury car from being expensed by a business.. There are annual depreciation caps, which were increased recently, but still limit the amount of depreciation, or "expense", you can take in a given year for any particular car. This effectively limits luxury cars, such as a Corvette, from being a wise business purchase. The work around is to lease the car and you can expense the entire monthly lease expense.

The maximum depreciation you can take on a passenger automobile is as follows.
$10,000 for the 1st taxable year in the recovery period,
$16,000 for the 2nd taxable year in the recovery period,
$9,600 for the 3rd taxable year in the recovery period, and
$5,760 for each succeeding taxable year in the recovery period.

Not a great recovery time on something costing $50k+

Now if you purchase an SUV, you can potentially depreciate 100% in the year of purchase with Section 179, but that's another story.

Easy Money

Now if you purchase an SUV, you can potentially depreciate 100% in the year of purchase with Section 179, but that's another story.[/QUOTE]

Sec 179 is a good friend of mine

pkincy

Can you convince an auditor that the Corvette has a GVW of over 6,000 lbs?

3 Z06ZR1

Deduct the Corvette as a luxury car? Did not know about the LUXURY CAR DEDUCTION? Ask the IRS if they haven't contacted you already!

All-Tex

Yes sir

JoesC5

How much is the gas guzzler tax on the ZR1 with the M7, and with the A8?

Easy Money

back in 2015 there was no gas guzzler tax on an M7 but $1,300.00
on the automatic. Get 34 miles to the gallon highway with mine when driving 70 mph

NO GUZZLER ON MY DURAMAX THOUGH??

not sure what the new ZR-1 guzzler is I believe it is in the $2000.00 range for the A-8

Easy Money

that would be a tough one for even Bill Clinton to wiggle out of.
Sec 179 is a very useful 100% deduction in a single year for capital used to purchase equipment for a business, I believe the cap is in the half a million range. Corvettes do not fit the bill.

AzDave47

Maybe the ZR1 with downforce at 180 MPH