If you bought a 2022 Tesla Model X (or similar SUV) and claimed 100% bonus depreciation—you’re not alone. And if the IRS tries to disallow your deduction, here’s how to fight back.

The IRS has incorrectly disallowed write-offs for Model X purchases, citing luxury auto depreciation caps. But their reasoning doesn’t hold up—and knowing your rights could save you over $100,000 in deductions.

At Polaris Tax & Accounting, we help business owners defend legitimate deductions, especially in high-stakes areas like Section 179 and bonus depreciation. Here’s what every Tesla owner (and tax pro) needs to know.

What’s the Problem with the Tesla Model X Write-Off?

We’ve seen IRS agents deny the 100% bonus depreciation deduction for the 2022 Tesla Model X, claiming it’s a passenger vehicle subject to the luxury auto depreciation limits under IRS Section 280F.

In one recent case, a taxpayer was denied a $120,000 deduction, with the IRS reducing the write-off to just $19,200.

The problem? The IRS is wrong.

Why the Model X Qualifies for Full Bonus Depreciation

Under IRS rules:

  • Passenger cars under 6,000 lbs. curb weight are subject to depreciation caps (max ~$20k in first year).
  • Trucks, vans, and SUVs with a gross vehicle weight rating (GVWR) over 6,000 lbs. are not.

✅ The 2022 Tesla Model X has a GVWR of 6,250 pounds ✅ Tesla classifies it as an SUV and truck for tax purposes ✅ It features 3 rows of seats, a flat-folding interior, and substantial cargo capacity ✅ The U.S. Department of Transportation classifies it as a non-passenger vehicle

Put simply, it’s legally a truck for tax purposes—and eligible for 100% bonus depreciation under Section 168(k).

How to Protect Your Deduction if the IRS Pushes Back

If the IRS tries to disallow your Model X deduction, follow this step-by-step approach:

1. Request a Supervisor Review
IRS examiners are human—and they get things wrong. Sometimes, escalating to a supervisor can resolve the issue immediately.

2. Gather Supporting Documentation

  • Manufacturer GVWR rating from Tesla
  • Copy of your purchase invoice
  • Photos or Tesla specs showing seating and interior design

3. Consider IRS Mediation or Appeal
If the issue isn’t resolved internally, use the IRS Independent Office of Appeals. Past cases have ruled in favor of the taxpayer here.

4. Go to Tax Court if Necessary
Yes, it’s rare—but you may win not only your deduction, but attorney’s fees if the IRS is found to be unreasonable.

Why This Matters to More Than Just Tesla Owners

This issue impacts:

  • Business owners using bonus depreciation on vehicles
  • Real estate agents, consultants, and small business owners buying qualifying SUVs
  • Tax preparers and EAs navigating aggressive IRS pushback

We’re seeing a trend where IRS agents are misclassifying heavy SUVs as luxury vehicles, costing taxpayers tens of thousands in deductions.

Pro Tip: Other Vehicles That Qualify for Bonus Depreciation

In addition to the Tesla Model X, here are other vehicles with GVWR >6,000 lbs that may qualify:

  • Chevy Suburban / Tahoe
  • Ford Expedition
  • BMW X5, X6, X7
  • Mercedes GLE / GLS
  • Rivian R1S

📌 Keep in mind: For 2023 and beyond, bonus depreciation phases out. It’s still available at 80% in 2023 and 60% in 2024—so plan purchases accordingly.

Don’t Let the IRS Bully You into Overpaying

If you made a clean, legal vehicle deduction and the IRS disallows it—push back. You’re not being aggressive. You’re being smart and protecting your rights under the law.

At Polaris Tax & Accounting, we represent clients facing IRS audits and deduction challenges. If your Model X or SUV deduction is questioned—we’ll stand with you.

📍 Based in Plantation, FL, we help clients throughout Florida and across the U.S. defend what they’re legally entitled to.

👉  Schedule a consultation today  if you’ve received a denial or IRS letter.