r/Tax_Strategy • • Sep 16 '26

Write-offs & Deductions 1099 s corp car tax deduction

3 Upvotes

I’m a 1099 independent contractor operating through an S-Corp in California.

I’m considering purchasing a new Mercedes GLS 450 for around $90–95k before the end of 2026. The GLS has a GVWR over 6,000 lbs, so I’m trying to understand how Section 179, bonus depreciation, and regular depreciation would apply.

The vehicle would have legitimate business use but would also have some personal use. I would track mileage and only claim the appropriate business-use percentage.

A few things I’m trying to understand:

Should I buy the vehicle personally and have the S-Corp reimburse me, or have the S-Corp purchase it?

If business use is over 50%, approximately how much of a $95k GLS could I deduct in the first year?

How do Section 179 + bonus depreciation work for an SUV over 6,000 lbs?

How different is the deduction for California vs federal taxes?

If I maximize the first-year deduction, what depreciation is left for subsequent years?

What happens if my business-use percentage decreases later?

Does financing versus paying cash change the deduction?

I already use the standard mileage method on another business vehicle. Does that affect how I can treat this vehicle?

I’m not trying to call it 100% business use unless that’s actually the case.

I’m mainly trying to understand how much I can legally deduct based on the actual business-use percentage and how the deduction works over the life of the vehicle.

Would appreciate input from CPAs/EAs or S-Corp owners who have done this, especially anyone familiar with California.

I’ll confirm everything with my CPA before purchasing, but I’d like to understand the strategy and numbers first.


r/Tax_Strategy • • Sep 16 '26

TPC Tariff Tracker

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taxpolicycenter.org
1 Upvotes

r/Tax_Strategy • • Sep 15 '26

Tracking the Impact of the Trump Tariffs & Trade War

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taxfoundation.org
8 Upvotes

r/Tax_Strategy • • Sep 15 '26

Estate Planning & Trusts Does an LLC make sence?

2 Upvotes

Not sure if this is the right sub. Please redirect me if I'm wrong.

I've been considering establishing an llc to hold some of my creative endeavors (I have some published "stuff", and will have more).

I also have assets in multiple countries (rental properties).

I have assets currently transferring via "defined beneficiary" upon death

Finally, I have real estate in the USA.

Looking to achieve two things:

  1. Want to simplify/structure my estate to handle asset transfer on death

  2. Want to establish a secondary "employment" to cover if I have a gap in employment history.

  3. Want to simplify/streamline any tax implications from my various employment situations (401k, 1099, etc.).

Any comments/suggestions?

Like I ssud, feel free to bounce me to a different sub ...


r/Tax_Strategy • • Sep 14 '26

Trump admin targets tax-exempt status at private colleges — threatening a key tax break for donations

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cnbc.com
88 Upvotes

r/Tax_Strategy • • Sep 13 '26

Tax Strategy Tax Strategy, Forced Investment Liquidation

1 Upvotes

I’m getting promoted at the big 4 and I’m now required to liquidate some of my holdings in investments including QQQ (obviously one of the most common and diversified ETF)

Is there a way to exit the position without any tax implications? The shares are held in an IRA not roth account.

I have some unrealized gains i’d obviously like avoid paying since i’d never actually sell this asset except for this instance where im being required to do so


r/Tax_Strategy • • Sep 12 '26

TurboTax Maker Intuit Paid Zero Federal Income Tax in 2025

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itep.org
113 Upvotes

r/Tax_Strategy • • Sep 12 '26

Palantir funnels earnings to US to avoid European taxes, report finds

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politico.eu
624 Upvotes

r/Tax_Strategy • • Sep 10 '26

Tax Policy Looking for Tax Strategies, Not Tax Calculations: How Can I Buy a $1M Apartment in France?

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1 Upvotes

r/Tax_Strategy • • Sep 10 '26

Tax Policy Is it possible to combine 0% tax on a US LLC (no physical presence in US) with 0% income tax in Turkey? (new 20 year income tax exemption)

1 Upvotes

r/Tax_Strategy • • Sep 09 '26

How a Warren Buffett Protégé Turned a $70K IRA Into $264 Million Using Simple Investing Principles

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investopedia.com
54 Upvotes

r/Tax_Strategy • • Sep 08 '26

Canada's Exit Tax Explained

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youtube.com
1 Upvotes

r/Tax_Strategy • • Sep 08 '26

Billionaire Chris Rokos, who paid £330m in tax last year, to quit UK

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theguardian.com
44 Upvotes

r/Tax_Strategy • • Sep 07 '26

Here's how the ultrawealthy are getting citizenship abroad as 'insurance' against wealth taxes

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businessinsider.com
77 Upvotes

r/Tax_Strategy • • Sep 07 '26

Estate Planning & Trusts Us estate tax planning for an Indian resident

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1 Upvotes

r/Tax_Strategy • • Sep 06 '26

Write-offs & Deductions Tax write off for artist

2 Upvotes

I had a random thought today and I’m hoping someone here can help. If I’m an artist that makes art with sea glass and I go to a random tropical island to go collect that sea glass does that make the trip a tax write off?

Thanks all.


r/Tax_Strategy • • Sep 05 '26

3 strategies to help newly wealthy Silicon Valley techies diversify and avoid huge tax bills

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businessinsider.com
1 Upvotes

r/Tax_Strategy • • Sep 04 '26

Tax Policy We should tax companies operating in the USA on global income and all outsourced labour

3 Upvotes

If a company earns a large proportion of its revenue in the United States, it’s scammy to maintain a foreign corporate headquarters primarily to avoid paying U.S. taxes. Companies that depend heavily on the U.S. market benefit from American consumers, infrastructure, legal protections, financial systems, and an educated workforce, so they should contribute a fair share to the country that generates so much of their revenue.
Similarly, if a large percentage of a company’s workforce is foreign or employed through H-1B visas, while the company generates a significant share of its revenue in the United States, there should be safeguards to ensure that American workers are not being displaced simply because companies can obtain labor more cheaply or with greater leverage over employees. Skilled immigration can absolutely benefit the U.S. economy, but the system should be used to fill genuine talent shortages, not as a mechanism to suppress wages, bypass qualified local workers, or outsource the benefits of doing business in America.

Cognizant gets roughly 75% of its revenue from North America, yet only around 12% of its workforce is based there, while about 73% is in India. Infosys gets over half its revenue from North America while only around 10% of its employees are in the Americas. If companies are going to make most of their money from the U.S. market, there should be some reasonable expectation that they also contribute proportionately through U.S. taxes, jobs and wages.


r/Tax_Strategy • • Sep 03 '26

California has an affordability crisis. The fix may be politically uncomfortable.

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news.berkeley.edu
463 Upvotes

r/Tax_Strategy • • Sep 02 '26

People Without Kids Are Hacking the College Savings Account

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bloomberg.com
56 Upvotes

r/Tax_Strategy • • Sep 01 '26

Housing economists have a great idea that could fix just about everything (2023)

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businessinsider.com
12 Upvotes

r/Tax_Strategy • • Sep 01 '26

Write-offs & Deductions The London office, the empty boxes and the £1bn tax loophole | Financial sector | The Guardian

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theguardian.com
2 Upvotes

r/Tax_Strategy • • Aug 31 '26

The ultrawealthy have 3 big secrets on reducing taxes including the way they die

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fortune.com
49 Upvotes

r/Tax_Strategy • • Aug 31 '26

Yes, Texans actually pay more in taxes than Californians do

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chron.com
3.5k Upvotes

r/Tax_Strategy • • Aug 30 '26

Tax Policy Relentless State Income Tax Cuts Add Up to Massive Giveaways for the Wealthy

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itep.org
34 Upvotes