2016 Tesla Model X Owners Could Qualify for Business Tax Deduction

PALO ALTO, California — Owners of the 2016 Tesla Model X midsize crossover who use the vehicle for business purposes may qualify for a significant tax deduction of up to $25,000 of the purchase price, a Tesla Motors spokeswoman told Edmunds.

The Model X apparently is heavy enough to qualify for the so-called "Hummer" tax break, a reference to the mammoth SUVs that were sold by General Motors. They include the Hummer H1, which was sold from 2001-'04.

Tesla said the curb weight of the Model X is 5,441 pounds, while the GVWR or Gross Vehicle Weight Rating is expected to exceed 6,000 pounds. If a vehicle has a GVWR of 6,000 pounds or more and is acquired for business use and is an integral part of furnishing transportation, it may be eligible for a business deduction, according to the U.S. Tax Code.

The GVWR often exceeds a vehicle's base curb weight because it takes into account the weight of optional accessories, cargo and passengers.

"Tesla always encourages its customers to consult with their personal tax accountant as each individual's tax situation may be different and Tesla does not guarantee this deduction," the company said.

Key competitors to the Model X include the BMW X6, Porsche Cayenne and Land Rover Range Rover Sport.

Edmunds says: A hefty business tax break on the Model X will make it very appealing to consultants, real-estate agents and other business owners.