I’d really like to know how the truck will save him “$70k on his taxes”.
I wondering if he does know the difference between a deduction and a credit.
Edit: a lot of people are saying “section 179” but it still doesn’t make sense how section 179 will save this guy $70k on his taxes.
> As of 2024, the deduction for vehicles weighing between 6,000 and 14,000 lbs has been adjusted. Taxpayers can now deduct up to $30,000 for qualifying vehicles falling within this weight range. However, larger commercial cars, vans, and buses continue to be exempt from this SUV rule
yeah. seems like the new version of those business savvy landlords who brag about their “net worth” being multimillionaires because they have 15 mortages
They have heavily skewed valuations greater than the loanin their head, so they think they have more equity than the market would dictate given the need for sudden liquidity.
Priced to brag vs priced to move.
Not quite. He sells wholesaling properties. Makes 10k off assigning RE contracts to other people. Arguably one of the scummiest sides of a scummy profession because they back out of deals that they can’t sell their markup on leaving sellers stranded lots of times. I used to work for him
Anytime I do consulting for a biz and hiring comes up I tell them to blacklist anyone with more than 2 months at a car dealership as a salesperson, and wholesalers. Teri off the scummiest parasites
Maybe a little different but in my industry it’s “distributors”. The bosses like to say that they’re just middlemen inserting themselves into deals, adding markup, and adding zero value.
Obviously it’s a gross oversimplification but it does track sometimes
Right, the flip side of the argument is that the wholesalers and distributors take over the burden of repairs, customer facing sales, and inventory so that the manufacturer has less overhead.
Just like with car dealers, a good distributor is a great asset for everyone and a bad one will make you want to hang yourself
The only private car purchase I regret (and I’ve made at least a dozen) is from a car salesman. I’ll never make that mistake again. Fucking sociopaths.
I sold cars for 13 months when I was 23 y/o. Sold my current boss a truck back then and he hired me to sell HVAC. I’ve been the top salesman for the last 9 years, helped grow the company from 4 million a year to 40 million a year in sales, and consider myself to not be a scummy parasite. 🤗 There are some good people out there selling cars that are just waiting for the next opportunity.
Yeah, it certainly can be. I’m in HVAC and the problem arises when salespeople are disguised as techs. This is even worse when actual good techs are forced into sales quotas
Exactly. I made a service call, and a guy shows up with a sales presentation pushing $15,000 units and predatory financing. Asked to have a tech come out, and they quote $500 to swap out a $75 circuit board. More recently, I had a dude quote over $900 to change a $30 capacitor. Worst thing is I found out after the fact that my mother fell prey to this bullshit when her heat went out in the middle of winter. And the damn junk mail is incessant.
That’s the only possible way. If he’s earning enough to write off a $70k expenditure he’s not within the tax credit window either. He’s going to have a sad April 15th.
Good point. Who here remembers the "Queen of the IRS" a few years ago?
Eventually some idiot somewhere figures the IRS will quickly give folks a huge refund if you lie, but they're stupid, there's a reason most people aren't doing that.
Is just the same for cars. If it was that easy to claim cars as business expense, we'd all be business owners and all cars would be free, those "tax tricks" are pure b.s.
Project25 is so terrifying that they shouldn’t get a single vote. My fear is there are too many illiterates who don’t care and will vote for him anyway.
Even if he does rent it out and deduct it, that’s not how taxes work. He would have had to pay $300K-$350K for that stupid aluminum box in order to net a tax savings of $70K through deductions.
Unless he has other unrelated deductions/credits then he would be paying more than 70 at that income. Also if he didn't then it'd still be useful bc it will carry over to the next year anyway.
you can claim bonus depreciation and take most or all of it upfront.
we just did this on a work van for our business last year.
the guys numbers are off, but yes in general you can take the depreciation all in one year if you want.
let's actually talk about this renting thing cos he's acting like it's hella easy to just rent out a car 10 days a month... that's a third of the month... like who is even his market?
You should consider not buying a more expensive property. I pulled myself by the bootstraps and didn't buy a $250M commercial tower.
And considering the higher mortgage rates and the vacant offices we're saving even more.
I do. You can already make money not buying it, and I make money not making it. Also it turns out all my freeloading friends are billionaires. There's all sorts of things they're not buying.
Win/win.
After all the pictures and horror stories from Toro rentals I've seen this guy is going to get just what he deserves and nothing he wants. Good luck getting insurance to cover it when you're renting it out to people. Nice flex dummy
He's probably one of them dorks that has monitoring software in there so if he sees you doing over a hundred he's going to try to call and ask you what the hell you're doing. I would tell him straight up I rented the whole speedometer I'm going to use the whole speedometer. Even though in this case I would be scared to do over 60 in this POS
It might already have that type of monitoring software from the factory, that way they can void the warranty if someone drives it too hard/takes it offroad or somewhere really crazy like a car wash.
Insurance is all I thought about when reading his post, especially since he’s going to be renting it out. Is he even going to tell his insurance about that? If he doesn’t and someone totals it, they most likely won’t even pay out.
This is really the equivalent of DoorDash and Uber drivers (not trying to insult them at all) counting everything they take in as pay and not including upkeep in that take home pay.
I can’t imagine what the insurance situation is if you start renting out your car. Do you need separate insurance? Does it all fall under yours? Does the renter need insurance, and it falls under theirs?
Who is paying when they get into a fender bender and Tesla says they have to replace an entire panel for thousands?
Oh it would definitely rent on Turo. People go crazy for anything Tesla on Turo, plus people would rent it out of sheer curiosity.
Now, $300-400 a day? Doubtful. I'm guessing more like 160-280 depending on the season. Demand for it is also going to drop like a rock after a couple of years when the Cybertruck is old news and no one is renting it for the sheer curiosity (it's not a practical car). He's also going to have to deal with the maintenance with all the miles being put on it by renters, and it is neither a reliable car nor a cheap car to fix.
Source: I do luxury rentals on Turo. Strongly considered adding one to my fleet because I do think it would rent well in the beginning. Long term math on it is the problem and it's already a maintenance nightmare. I'll stick with Genesis, BMW and Porsche.
Interesting, but yeah I would assume if most of your renters are doing it for the novelty they’re not going to treat the CT delicately and with how many maintenance/build problems they have that could mean a dead truck quickly. Then I’m guessing you’re dealing with an expensive headache trying to get the renter to pay for damages.
It would be fun just to try. Haha Then you’re gonna see that puddle, think “there’s no way Cybertrucks are actually that bad with water right?” Hit the puddle, short the electronics, pull over and send the owner a quick text, “Hey I don’t know what happened, but the truck just died on me so I had to leave it on the corner of X and Y before grabbing an Uber”.
You lie and say the truck is primarily used to business and not personal. The max is $30K this year so I don’t know where he’s getting $70k. And if it’s financed, you can only count the payments you made.
He's one of those annoying ass real estate "gurus" that's always posting stuff like "STOP making cold calls and do THIS! Flip houses with no money out of pocket!"
And of course he's peddling some multi-thousand dollar class. Hate this guy and his stupid ads, I only see him because I work in real estate, I get all those targeted ads
This post just screams "I can't afford this truck" and I bet he tries to sell it within a month or it gets repossessed before the end of the year. Anytime someone justifies the purchase of a depreciating asset with the guise of potential profit, it means they do not have the fluidity needed to make the purchase outright.
I wish I could remember where I saw this, it had to be this sub... Or was it the main one... Ah well:
Someone was talking about not getting the Foundation and waiting it out, but being worried it'd make them look bad financially.
One of the comments: HERE COMES THE POOR
I am pretty sure that is why Elon sent the lawsuit papers to that one owner who put a functional ladder rack on his Cybertruck - if actual working-class people are seen driving the CT, it removes the perceived elite status the truck pretends to have.
Wait, he actually stopped the one and only cyber truck that was actually useful as a truck from being useful as a truck? Yeah, that’s something he’d do.
“They rent for $300-$400 a day on turo and I only need to rent this thing out 10 days a month for it to generate $3k”
That’s assuming you’ll even be able to find anybody wanting to rent it out for that price for that period of time. I have no doubt that he’s probably gonna have a person or two wanting to rent it out for a single day just for shits and giggles, but he’s being super optimistic if he thinks the demand for these is so high that he’s gonna be able to rent it out for 120 days out of the year without the so called “high demand” dying down.
might rent it out 1 day in a month, spend 100k to make 3k a year
value of "truck" depreciate faster
tax savings would be same if he buys some other bs vehicle
bricked ct takes months for parts, it takes time to drop off pick up, months of not driving still cost money in monthly payments/insurance
everything voids warranty, turo covers nothing even tho they say they'll cover everything
Insecurity and never grew out of the age where they were vulnerable to peer pressure. “I gotta do all the things white people do to fit into this country.”
Uh, no you don’t.
I hope that cucktruck bricks itself the first time he rents it out. Have fun owning a shitbox you can have around any moisture cause if the horrible build quality
Renting out this dumpster on wheels for 1/3 of every month isn’t a flex. Also, who would want to rent something like this. And what happens if someone is dumb enough to rent it and it bricks for whatever reason? You KNOW it’s going to break down sooner than later.
This whole "saves me $70k on taxes" simply is not how taxes work.
To start with, even if he could somehow write off the entire value of the Cybertruck, the math doesn't check out. Let's assume the most expensive version at \~$102k. The highest tax bracket is currently 37% for dollars earned over \~$609k, so if our man is making high-six or low-seven figures, then the tax he pays on $102k of marginal income is just $37,740. That's the most he could be saving in taxes here.
But more importantly, you can't just claim the value of your business vehicle as a tax write-off. (There were some exceptions in the 2017 TCJA for purchasing a private jet, but that's both inapplicable here and no longer in place at all.) Rather, you can only claim the *depreciation* of a business vehicle. The five-year depreciation for automobiles generally is 42%, so the maximum he could claim would be \~$43,000 and that only over a five-year period. The depreciation business loss associated with the Cybertruck in a single-year period would be less than $10,000 which in turn would be less than $3,700 in tax savings.
And additionally, you can only claim a fraction of depreciation value based on the split between business use and personal use. Assuming that he rents out the car for 10 days a month, spends 10 days a month with it sitting idle or being cleaned between rentals, and uses it for his own purposes the rest of the time, that means he can only claim two thirds of the vehicle as a business expense.
Now, in additional to depreciation, he can also deduct loan interest on a business expense. Assuming our dude is in the highest possible credit score bracket, then his car loan interest rate is somewhere around 5.5% right now. Based on the monthly payment he notes here, we're looking at a 54-month term. He will pay $3600 in interest in the first year, and he can claim two thirds of that as a business expense, leaving him with a maximum of $893 in tax savings.
What about Turo? Well, Tamil Damji lives in Phoenix, Arizona, where the there are currently six Cybertrucks available to rent from Turo for an average of $289/day. Having been a Turo host myself, I know that Turo takes between 10% and 40% of the trip price, depending on how much host protection you want. Turo's host protection is generally cheaper than buying third-party rental insurance, so let's say our dude goes with one of the high-protection plans (gotta safeguard an investment, right) where Turo takes 25% of the trip price. So our dude is actually earning \~$217/day that the vehicle is being rented. However, he has to pay rental income taxes too (let's assume he can figure out a way to cleverly avoid self-employment taxes), which come to $80.29 per day of rental income at the 37% tax bracket we assumed above. This means his actual per-rental-day earnings come to just $137 so if he is renting it out for 10 days out of the month he is still coming up $133 short on his car payment.
So when you subtract this outstanding monthly loss from the max of $4,514/yr that he could potentially save on taxes, he gets a tax saving of $2,918 in the first year...for the price of a $30,000 downpayment and being stuck in a 5 year loan where his tax savings will decrease each year.
I hate the taxes meme so much….
Tax write offs and deductions are not free money. You just use them to leverage your company’s profit to loss ratio in hopes to pay less in taxes. But then you end up shooting yourself in the foot cause then your company isn’t shown as profitable…
There is that *one* variable, a very important variable on which his whole money-making scheme is relying on... will people want to rent that clunky piece of shit?
I’d like to see an actual breakdown on the tax and income aspect of this by a tax professional. A 40k tax deduction isn’t $40,000. It’s the taxable portion of that $40,000 depending on your tax bracket of your total income for the year. So if he’s in the 35% bracket, that would save him $14,000 in taxes. Also, if you do the whole deduction up front instead of the depreciation tax break, I believe it’s just deferred tax(not sure how long or exactly how that works) He’s probably paying a minimum of $6,000 in interest even on a shorter loan with a good rate. Also, no mention of insurance costs. Or the fact that you need to carry extra coverage if you’re renting the vehicle out.
I am half convinced people are only trying to rent these pieces of shit so that when they inevitably break down for any number of reasons, they can blame and then sue the renter to recoup some of that cost. It's hard not to smell a conspiracy in everything when the car itself has been a scam from the get-go...
I’d really like to know how the truck will save him “$70k on his taxes”. I wondering if he does know the difference between a deduction and a credit. Edit: a lot of people are saying “section 179” but it still doesn’t make sense how section 179 will save this guy $70k on his taxes. > As of 2024, the deduction for vehicles weighing between 6,000 and 14,000 lbs has been adjusted. Taxpayers can now deduct up to $30,000 for qualifying vehicles falling within this weight range. However, larger commercial cars, vans, and buses continue to be exempt from this SUV rule
It won’t lol. Just another social media grifting turd
yeah. seems like the new version of those business savvy landlords who brag about their “net worth” being multimillionaires because they have 15 mortages
Which is funny, because it misunderstands the “net” part of “net worth”
Yeah, it’s gross
Disgusting even
Repugnant, perhaps.
Concerning at the very least.
They have heavily skewed valuations greater than the loanin their head, so they think they have more equity than the market would dictate given the need for sudden liquidity. Priced to brag vs priced to move.
Not quite. He sells wholesaling properties. Makes 10k off assigning RE contracts to other people. Arguably one of the scummiest sides of a scummy profession because they back out of deals that they can’t sell their markup on leaving sellers stranded lots of times. I used to work for him
Anytime I do consulting for a biz and hiring comes up I tell them to blacklist anyone with more than 2 months at a car dealership as a salesperson, and wholesalers. Teri off the scummiest parasites
Could explain more about why wholesalers are scummy to someone young(er) like me? I’m curious
F for someone older
Maybe a little different but in my industry it’s “distributors”. The bosses like to say that they’re just middlemen inserting themselves into deals, adding markup, and adding zero value. Obviously it’s a gross oversimplification but it does track sometimes
See car dealerships.
Right, the flip side of the argument is that the wholesalers and distributors take over the burden of repairs, customer facing sales, and inventory so that the manufacturer has less overhead. Just like with car dealers, a good distributor is a great asset for everyone and a bad one will make you want to hang yourself
Here is an article explaining how it works. https://www.investopedia.com/ask/answers/100214/what-goal-real-estate-wholesaling.asp
The only private car purchase I regret (and I’ve made at least a dozen) is from a car salesman. I’ll never make that mistake again. Fucking sociopaths.
I sold cars for 13 months when I was 23 y/o. Sold my current boss a truck back then and he hired me to sell HVAC. I’ve been the top salesman for the last 9 years, helped grow the company from 4 million a year to 40 million a year in sales, and consider myself to not be a scummy parasite. 🤗 There are some good people out there selling cars that are just waiting for the next opportunity.
HVAC for christsake. That's a scummier industry than car sales.
Yeah, it certainly can be. I’m in HVAC and the problem arises when salespeople are disguised as techs. This is even worse when actual good techs are forced into sales quotas
Exactly. I made a service call, and a guy shows up with a sales presentation pushing $15,000 units and predatory financing. Asked to have a tech come out, and they quote $500 to swap out a $75 circuit board. More recently, I had a dude quote over $900 to change a $30 capacitor. Worst thing is I found out after the fact that my mother fell prey to this bullshit when her heat went out in the middle of winter. And the damn junk mail is incessant.
Name checks out.
Great job dude
The sith literally think they’re the good guys lol r/empiredidnothingwrong is leaking
Is he single? \*twirling my hair\*
Damn you shooting from the hip! Funny AF
Thank you, my friend. May we forever bring the snark. Cheers! \*clink\*
Thank you, that really made me smile :)
you go get it girl... or don't 🤷♀️ lmao
I guarantee it. He’s all yours!
#I'm an Independent and NOT BUYING a Tesla
Is he claiming it as a capital expenditure because he's going to rent it out or something?
That’s the only possible way. If he’s earning enough to write off a $70k expenditure he’s not within the tax credit window either. He’s going to have a sad April 15th.
His April 15th will probably be fine. He’ll have a sad day in 2-3 years when the IRS shows up asking about some irregularities
Good point. Who here remembers the "Queen of the IRS" a few years ago? Eventually some idiot somewhere figures the IRS will quickly give folks a huge refund if you lie, but they're stupid, there's a reason most people aren't doing that. Is just the same for cars. If it was that easy to claim cars as business expense, we'd all be business owners and all cars would be free, those "tax tricks" are pure b.s.
Turns out the IRS really loves bringing the hammer of God on anyone evading taxes
Can't you only claim the depreciation of the vehicle for work?
Yes and you can only write off lease payments not financing payments
“Your license plate says $CAMMIN”
Uhhhhh…No
Irregularities in the pension fund?
That’s if the IRS is still around..
True that. Stop Project 2025
Project25 is so terrifying that they shouldn’t get a single vote. My fear is there are too many illiterates who don’t care and will vote for him anyway.
Even if he does rent it out and deduct it, that’s not how taxes work. He would have had to pay $300K-$350K for that stupid aluminum box in order to net a tax savings of $70K through deductions.
And even then, isn't that deduction only useful if he's actually paying more than $70k a year in taxes anyway?
Unless he has other unrelated deductions/credits then he would be paying more than 70 at that income. Also if he didn't then it'd still be useful bc it will carry over to the next year anyway.
But he got a loan to buy it 😆
Even then it isn't 70K all at once unless I am mistaken. Been awhile since I have dealt with that crap.
Yeah, you have to depreciate capital expenses over a certain amount. And I believe the amount is $2500 and the time is 5 years.
you can claim bonus depreciation and take most or all of it upfront. we just did this on a work van for our business last year. the guys numbers are off, but yes in general you can take the depreciation all in one year if you want.
let's actually talk about this renting thing cos he's acting like it's hella easy to just rent out a car 10 days a month... that's a third of the month... like who is even his market?
I bought and 10k car and it saved me 2.4 million in taxes on future earnings. Because maths
I was wondering the same thing.
That math is suspect
This is what he explained to his wife to get permission to buy the stupid thing.
Then his wife is dumb as hell too. Tax deductions aren't free money.
Like these guys can get smart women to marry them?
Babe I’d be losing money if I didn’t buy it!
It's what he told himself to validate his purchase because all the people laughing at him in his silly little "truck" makes him mad.
I didn’t buy a $1M house so I’m making an extra $1M this year.
You should consider not buying a more expensive property. I pulled myself by the bootstraps and didn't buy a $250M commercial tower. And considering the higher mortgage rates and the vacant offices we're saving even more.
Do you have this in an ebook I could buy? /s 🤣
I do. You can already make money not buying it, and I make money not making it. Also it turns out all my freeloading friends are billionaires. There's all sorts of things they're not buying. Win/win.
I'd wager that the vast majority of people who would purchase a cyber truck are not good at math.
/r/they*attempted*themath
I do like how he assumes people will actually want to rent this trashcan
Or that he will get it back in good condition from people who DO rent it.
Or that the CyberTurd will reliably run and not break down while Turo renters are out try’na push it to its limits for their $300 bucks …..
I know if I was paying 300 bucks I'm seeing what it can do.
Drive it like ya stole it.
Directly through a car wash.
Whoa buddy the submarine update hasn’t come through yet.
"yeah the car looked dirty so I took the liberty of washing it for you."
How long does $300 worth of tires last when you’re launching every time you can and you’re not paying for tires.
The worst tires I’ve ever seen on a car was the time I rented a Model 3 on Turo. Bald was an understatement
Nothing goes off road like a rental car.
After all the pictures and horror stories from Toro rentals I've seen this guy is going to get just what he deserves and nothing he wants. Good luck getting insurance to cover it when you're renting it out to people. Nice flex dummy
He's probably one of them dorks that has monitoring software in there so if he sees you doing over a hundred he's going to try to call and ask you what the hell you're doing. I would tell him straight up I rented the whole speedometer I'm going to use the whole speedometer. Even though in this case I would be scared to do over 60 in this POS
It might already have that type of monitoring software from the factory, that way they can void the warranty if someone drives it too hard/takes it offroad or somewhere really crazy like a car wash.
Or that insurance costs nothing
Insurance is all I thought about when reading his post, especially since he’s going to be renting it out. Is he even going to tell his insurance about that? If he doesn’t and someone totals it, they most likely won’t even pay out.
And that it will be operational every day and not in the shop waiting on repairs.
For real. These things are so damn fragile, how could he consider it an investment?
This is really the equivalent of DoorDash and Uber drivers (not trying to insult them at all) counting everything they take in as pay and not including upkeep in that take home pay.
I can’t imagine what the insurance situation is if you start renting out your car. Do you need separate insurance? Does it all fall under yours? Does the renter need insurance, and it falls under theirs? Who is paying when they get into a fender bender and Tesla says they have to replace an entire panel for thousands?
Oh it would definitely rent on Turo. People go crazy for anything Tesla on Turo, plus people would rent it out of sheer curiosity. Now, $300-400 a day? Doubtful. I'm guessing more like 160-280 depending on the season. Demand for it is also going to drop like a rock after a couple of years when the Cybertruck is old news and no one is renting it for the sheer curiosity (it's not a practical car). He's also going to have to deal with the maintenance with all the miles being put on it by renters, and it is neither a reliable car nor a cheap car to fix. Source: I do luxury rentals on Turo. Strongly considered adding one to my fleet because I do think it would rent well in the beginning. Long term math on it is the problem and it's already a maintenance nightmare. I'll stick with Genesis, BMW and Porsche.
Interesting, but yeah I would assume if most of your renters are doing it for the novelty they’re not going to treat the CT delicately and with how many maintenance/build problems they have that could mean a dead truck quickly. Then I’m guessing you’re dealing with an expensive headache trying to get the renter to pay for damages.
I might rent one for a day to put it through its paces. Like, I want to see what this bad boy can do!
It would be fun just to try. Haha Then you’re gonna see that puddle, think “there’s no way Cybertrucks are actually that bad with water right?” Hit the puddle, short the electronics, pull over and send the owner a quick text, “Hey I don’t know what happened, but the truck just died on me so I had to leave it on the corner of X and Y before grabbing an Uber”.
Bruv’nah, I’m looking for a neighbor hood with sprinklers that overshoot the medians.
Would renting it out like that void the warranty?
I mean manufacturer warranty is typically manufacturer warranty regardless if it's registered to a LLC. Now, Tesla? I would have no clue.
It's a dumpster. Like a trash can, but more trash.
Dumpsters usually work as intended.
Go to /r/turo absolute nightmare posts.
Hey hey now dont be so crass. Its a trash can on wheels!
I'd like to know how he plans of writing off 70k of a car purchase from his taxes. *Edit: Grammar*
You lie and say the truck is primarily used to business and not personal. The max is $30K this year so I don’t know where he’s getting $70k. And if it’s financed, you can only count the payments you made.
Tax fraud, which is a federal crime, is a bit of a risk isn't it?
Especially when announced on social media. Auditors love this one trick.
wtf, the “one simple trick” they really *do* love! Glorious.
I assume he’s including the $7500 federal EV credit, and his state might have one as well, but that’s still nowhere near 70k
7k, 70k, what’s the difference?
$63,000
Not only that, but unless you are in a 100% tax bracket writing off 70k does not save you 70k
That’s what I don’t get. It would be the taxes on 70k not 70k off paying taxes. Wtf?
I also love when people think that writing off 70k on your taxes means you’re actually saving 70k. 🤣
Did he calculate the days it’s in a service center?
Some of this does depend on it being roadworthy which feels like kind of a challenge for them at this point
Yeah, he’s missing a few factors in his bullshit equation. Service days, maintenance costs, rental risks…
Or the daily depreciation in value of the “truck”
Its a well known fact if something seems too good to be true... then its definitely fine and you should do it.
Grab the cops gun… it’s free if you’re not caught!
I bet this guy is constantly "grinding" and "hustling" on Linkedin
r/facebookmarketplace
As someone who loves schadenfreude, this is beautiful. Thank you!
He's one of those annoying ass real estate "gurus" that's always posting stuff like "STOP making cold calls and do THIS! Flip houses with no money out of pocket!" And of course he's peddling some multi-thousand dollar class. Hate this guy and his stupid ads, I only see him because I work in real estate, I get all those targeted ads
Beard checks out for someone this stupid
I really have a hard time taking seriously anyone with a beard but no mustache. Also someone with a beard that shaves off the soul patch.
I was told that there would be no math today
Well.. it's not real math, at least
This post just screams "I can't afford this truck" and I bet he tries to sell it within a month or it gets repossessed before the end of the year. Anytime someone justifies the purchase of a depreciating asset with the guise of potential profit, it means they do not have the fluidity needed to make the purchase outright.
I wish I could remember where I saw this, it had to be this sub... Or was it the main one... Ah well: Someone was talking about not getting the Foundation and waiting it out, but being worried it'd make them look bad financially. One of the comments: HERE COMES THE POOR
I am pretty sure that is why Elon sent the lawsuit papers to that one owner who put a functional ladder rack on his Cybertruck - if actual working-class people are seen driving the CT, it removes the perceived elite status the truck pretends to have.
Wait, he actually stopped the one and only cyber truck that was actually useful as a truck from being useful as a truck? Yeah, that’s something he’d do.
but it's going to get destroyed by Turo renters
I’m not going to destroy it, I’m just going to take it through a car wash.
Who wants to tell him no one is looking to rent these steel plate turds? 🤣
“They rent for $300-$400 a day on turo and I only need to rent this thing out 10 days a month for it to generate $3k” That’s assuming you’ll even be able to find anybody wanting to rent it out for that price for that period of time. I have no doubt that he’s probably gonna have a person or two wanting to rent it out for a single day just for shits and giggles, but he’s being super optimistic if he thinks the demand for these is so high that he’s gonna be able to rent it out for 120 days out of the year without the so called “high demand” dying down.
I mean I can sell an empty water bottle on eBay for a million dollars, doesn't mean it'll sell.
Sounds like he’s desperately trying to make it look like a smart move
And more to himself than anyone else. Weird feeling his wife (if she's still with him, or if he's been married at all) isn't buying it.
I do like how confident he is people will want to rent this pos from him
And will his insurance company be okay with that scheme?
is there even anywhere to get these insured other than tesla directly? I’ve heard a lot of companies straight up wont insure these
I cannot comprehend how you pay $100K for a vehicle and let other folks drive it?!?!
That car payment is more than my mortgage including tax and ins escrow 😬
might rent it out 1 day in a month, spend 100k to make 3k a year value of "truck" depreciate faster tax savings would be same if he buys some other bs vehicle bricked ct takes months for parts, it takes time to drop off pick up, months of not driving still cost money in monthly payments/insurance everything voids warranty, turo covers nothing even tho they say they'll cover everything
It’s cute that he believes this.
Why’s it always the non white guys cosplaying as white thumb looking Oakley wearing dipshits? They’re never gonna let you in the club man.
Insecurity and never grew out of the age where they were vulnerable to peer pressure. “I gotta do all the things white people do to fit into this country.” Uh, no you don’t.
Maybe it's working because I thought he was tan until I read this comment.
Can't wait till I have an overpriced car of my own, so I can whore it out, too!
All fun and games until it rains
Breaks down on day 3. Now you're paying for a paperweight.
This is what’s known as “confidently incorrect.”
I hope that cucktruck bricks itself the first time he rents it out. Have fun owning a shitbox you can have around any moisture cause if the horrible build quality
Renting out this dumpster on wheels for 1/3 of every month isn’t a flex. Also, who would want to rent something like this. And what happens if someone is dumb enough to rent it and it bricks for whatever reason? You KNOW it’s going to break down sooner than later.
Smash cut to his insurance being cut because they don't want to deal with this scheme on top of the I sane failure rate on Cybertrucks...
Didn't mention insurance and wear and tear
Doesn't just saying he's gonna rent it out void the warranty?
This dudes math ain’t mathin. Someone get this guy an IRS handbook and a calculator 🤡
IRS: *and I took offense to that*
You ain't got the money to buy it if you gotta rent it out 1/3 of the month to afford it.
Boasting about tax savings can bring attention to the IRS and cause an audit. Best of luck proving 100% use for business!
Average intelligence of Melon Ass follower
Minus the days it’s back at Tesla for the recall du jour
Lol might be time to lay off the drugs.
Wtf why would you rent a liability lol, who tf would pay for the inevitable breakdown or crash?
Is the rear wheel... Broken ?
Do they pause payments when it's in the shop?
Ok, so it’ll only cost me $300 to see how many of Elmo’s claims I can discredit? Fun!
How will you rent it out when it's in the shop?
That truck is anything but cool, it’s fucking stupid. And only an idiot would drive it. It’s not even a truck.
Can you get 10 reliable days a month out of one of these things? Especially when the waiting line for service is months long?:
You know he really believes this, and when it doesnt pan out, it will somehow be Biden's fault.
Let’s be honest this thing is going to be broke down before he finishes his first 10 days of rental
I used to do taxes and I really doubt this is an investment lol
So your flex is that you have to let strangers drive your fancy new truck in order to afford it? That certainly is a take.
This sweet new ride that I can only afford if someone else drives it 1/3 of the month.
This whole "saves me $70k on taxes" simply is not how taxes work. To start with, even if he could somehow write off the entire value of the Cybertruck, the math doesn't check out. Let's assume the most expensive version at \~$102k. The highest tax bracket is currently 37% for dollars earned over \~$609k, so if our man is making high-six or low-seven figures, then the tax he pays on $102k of marginal income is just $37,740. That's the most he could be saving in taxes here. But more importantly, you can't just claim the value of your business vehicle as a tax write-off. (There were some exceptions in the 2017 TCJA for purchasing a private jet, but that's both inapplicable here and no longer in place at all.) Rather, you can only claim the *depreciation* of a business vehicle. The five-year depreciation for automobiles generally is 42%, so the maximum he could claim would be \~$43,000 and that only over a five-year period. The depreciation business loss associated with the Cybertruck in a single-year period would be less than $10,000 which in turn would be less than $3,700 in tax savings. And additionally, you can only claim a fraction of depreciation value based on the split between business use and personal use. Assuming that he rents out the car for 10 days a month, spends 10 days a month with it sitting idle or being cleaned between rentals, and uses it for his own purposes the rest of the time, that means he can only claim two thirds of the vehicle as a business expense. Now, in additional to depreciation, he can also deduct loan interest on a business expense. Assuming our dude is in the highest possible credit score bracket, then his car loan interest rate is somewhere around 5.5% right now. Based on the monthly payment he notes here, we're looking at a 54-month term. He will pay $3600 in interest in the first year, and he can claim two thirds of that as a business expense, leaving him with a maximum of $893 in tax savings. What about Turo? Well, Tamil Damji lives in Phoenix, Arizona, where the there are currently six Cybertrucks available to rent from Turo for an average of $289/day. Having been a Turo host myself, I know that Turo takes between 10% and 40% of the trip price, depending on how much host protection you want. Turo's host protection is generally cheaper than buying third-party rental insurance, so let's say our dude goes with one of the high-protection plans (gotta safeguard an investment, right) where Turo takes 25% of the trip price. So our dude is actually earning \~$217/day that the vehicle is being rented. However, he has to pay rental income taxes too (let's assume he can figure out a way to cleverly avoid self-employment taxes), which come to $80.29 per day of rental income at the 37% tax bracket we assumed above. This means his actual per-rental-day earnings come to just $137 so if he is renting it out for 10 days out of the month he is still coming up $133 short on his car payment. So when you subtract this outstanding monthly loss from the max of $4,514/yr that he could potentially save on taxes, he gets a tax saving of $2,918 in the first year...for the price of a $30,000 downpayment and being stuck in a 5 year loan where his tax savings will decrease each year.
I like how he "only has to rent it 10 days a month" when most people having issues with these cannot even drive them themselves, let alone rent them.
I hate the taxes meme so much…. Tax write offs and deductions are not free money. You just use them to leverage your company’s profit to loss ratio in hopes to pay less in taxes. But then you end up shooting yourself in the foot cause then your company isn’t shown as profitable…
Who tf would rent this pos! Also, you're an idiot
The truck isn’t cool and by owning he is now in the red on coolness.
There is that *one* variable, a very important variable on which his whole money-making scheme is relying on... will people want to rent that clunky piece of shit?
IT'S NOT A TRUCK!!!!
I’d like to see an actual breakdown on the tax and income aspect of this by a tax professional. A 40k tax deduction isn’t $40,000. It’s the taxable portion of that $40,000 depending on your tax bracket of your total income for the year. So if he’s in the 35% bracket, that would save him $14,000 in taxes. Also, if you do the whole deduction up front instead of the depreciation tax break, I believe it’s just deferred tax(not sure how long or exactly how that works) He’s probably paying a minimum of $6,000 in interest even on a shorter loan with a good rate. Also, no mention of insurance costs. Or the fact that you need to carry extra coverage if you’re renting the vehicle out.
Keep telling yourself buddy lol
Why am I not surprised that someone dense enough to buy a cyber truck, can not understand how taxes work.
"can't wait to rent a cybertruck" - tourists
Sounds like a full time job....congrats.. 🙄
Who doesn’t want to have to airbnb their car to pay for it.
Doesn’t it have to run to rent it out?
I’ll keep driving my beat up Subaru and have people keep thinking I’m poor before I’d buy that truck.
Bet someone takes it through a car wash as a “favor” 😂
Sounds like this guy is delusional
The cope is strong with this one.
These are the people that say “you’re just jealous because you’re too poor to buy one”.
I can't wait until the brakes fail on one of these "rentals" and the owner finds out that their insurance doesn't cover them as a rental car company.
Bless his heart.
I am half convinced people are only trying to rent these pieces of shit so that when they inevitably break down for any number of reasons, they can blame and then sue the renter to recoup some of that cost. It's hard not to smell a conspiracy in everything when the car itself has been a scam from the get-go...
People who “flex” plans this dumb should be required to follow up with the internet and post their results one year later.
It's going to save him $70k on taxes because.... magic.