[1442]

I am set for a spring delivery, there is no reasonable amount of money that will take the keys out of my hands on this vehicle. I first owned a H1 when I was much younger and have always loved the name and the brand. I love what this brand is now more than ever moving into the future.

No one can get their hands on these cars, people who want them will pay whatever it takes. People listing these cars for $250-$300k will regret this in the upcoming months. The more youtube reviews will push the popularity of this vehicle through the roof.

People who own a business can pay $1M for this accelerate the depreciation of the vehicle, which is why they don't care to pay $250-$300k for them. You will see a $500k Hummer this summer.

After a year ow two I will part with mine and probably loose money, but I could care less. I like to play with my toys. Its much more fun than looking at numbers on a screen.

 

[Tom E-Tron]

I am set for a spring delivery, there is no reasonable amount of money that will take the keys out of my hands on this vehicle. I first owned a H1 when I was much younger and have always loved the name and the brand. I love what this brand is now more than ever moving into the future.

No one can get their hands on these cars, people who want them will pay whatever it takes. People listing these cars for $250-$300k will regret this in the upcoming months. The more youtube reviews will push the popularity of this vehicle through the roof.

People who own a business can pay $1M for this accelerate the depreciation of the vehicle, which is why they don't care to pay $250-$300k for them. You will see a $500k Hummer this summer.

After a year ow two I will part with mine and probably loose money, but I could care less. I like to play with my toys. Its much more fun than looking at numbers on a screen.

Hummer does not qualify for full section 179 deduction... Better study up on tax code... The namesake Hummer is exactly why the "Hummer deduction" got changed.

 

[1442]

Hummer EV qualifies for it. 100% without a doubt.

 

[azbill]

The bed is only 5 feet, but if you include the frunk, then yes it could qualify. After all, that is cargo area and is not accessible from the interior.

 

[Tom E-Tron]

Hummer EV qualifies for it. 100% without a doubt.

Hummer EV does not qualify for Section 179 full deduction, it does qualify for $25K first year deduction...

 

[Tom E-Tron]

The bed is only 5 feet, but if you include the frunk, then yes it could qualify. After all, that is cargo area and is not accessible from the interior.

"a cargo area 6' in Length" Hummer does not have, the tax code does not say the sum of 2 cargo areas... It says "a cargo area"

The tax code was specifically modified some years back to eliminate the "Hummer Deduction" and it was actually the Tesla Model X that forced Congress to act, too many realtors deducted Model X through the loophole so they fixed it. Interesting that all the EV pickups coming out have beds shorter then 6' except the Cybertruck.

 

[INgolfer]

A truck currently selling for $250k-ish and then gradually becoming more and more mass produced is not likely to increase in market value. This isn’t a 300-per-year Lamborghini this is a 21,000 a year (stated goal) unit with production growing more and more. We already see many people trying to make a quick buck, so when a couple hundred of these things start popping up in a few months the supply will certainly exceed demand specifically at that price point, this driving the prices down.

 

[Tom E-Tron]

A truck currently selling for $250k-ish and then gradually becoming more and more mass produced is not likely to increase in market value. This isn’t a 300-per-year Lamborghini this is a 21,000 a year (stated goal) unit with production growing more and more. We already see many people trying to make a quick buck, so when a couple hundred of these things start popping up in a few months the supply will certainly exceed demand specifically at that price point, this driving the prices down.

I think his original point was that section 179 deduction people could overpay and then deduct it, but the Hummer does not qualify for the full deduction and by the end of Q2 prices will be more normalized as production ramps. I hear Hummers are seen regularly laving the plant now, so should be seeing them spread fast.

 

[Alexjrs]

I have no opinion on this. I hope your right doe guy

 

[elbee]

How can i short the vehicle to anyone wanting pay $300k....

 

[Dark-Fx]

A truck currently selling for $250k-ish and then gradually becoming more and more mass produced is not likely to increase in market value.

The problem with this statement is that the Edition 1's are a special trim level that's limited production. And being that they are actually going to produce them into the 2023 model year makes the first year even more limited.

That said, I'm still planning on offloading mine soon. From a monetary perspective I just can't justify keeping it now that I have the R1T, which I like better, and the company that produces it has a better ethos than GM.

 

[Msv5010]

That said, I'm still planning on offloading mine soon. From a monetary perspective I just can't justify keeping it now that I have the R1T, which I like better, and the company that produces it has a better ethos than GM.

Not trying to be argumentative with this question, but does Rivian really still have a better ethos after the stunts they pulled around pricing? I know they did a mea culpa but it seemed like it got pretty toxic for at least a moment. Have all the rave reviews turned the tide or is the bar just really low?

I'll admit I regret not placing a reservation for the R1S prior to the price hike. I don't see a scenario in which I would purchase the R1S over the Hummer but I have been second guessing with all the glowing reviews of the R1T and the growing number of folks who seem to favor the Rivian over the Hummer. That said, I view the price hike as a large mark up and am not willing to pay it knowing most folks are getting the same vehicle for significantly less.

More on topic though, as a corporate tax advisor I believe Tom is correct, especially when you read the actual text of the code that requires an "open" area. Even if you could argue that the frunk space should be taken into account in terms of length (I do not believe that is the correct reading or the intent of the language but that doesn't mean you couldn't argue otherwise), I do not believe the frunk could be viewed as "an open area" or "designed to be used as an open area", in which case the bed is the only relevant space.

Caveat - I have not spent any significant time looking at this and you should consult your own tax advisors, as they may be willing/able to take an alternative position.

 

[Dark-Fx]

Not trying to be argumentative with this question, but does Rivian really still have a better ethos after the stunts they pulled around pricing? I know they did a mea culpa but it seemed like it got pretty toxic for at least a moment. Have all the rave reviews turned the tide or is the bar just really low?

I'll admit I regret not placing a reservation for the R1S prior to the price hike. I don't see a scenario in which I would purchase the R1S over the Hummer but I have been second guessing with all the glowing reviews of the R1T and the growing number of folks who seem to favor the Rivian over the Hummer. That said, I view the price hike as a large mark up and am not willing to pay it knowing most folks are getting the same vehicle for significantly less.

I'm willing to blame the pricing fiasco on Rivian being a publicly traded company now. As long as RJ is at the helm, I think they are going to stay true to their ethos of building adventure vehicles and trying to minimize the ecological impact of them. The R1T is totally worth the cost increase, and I just consider myself lucky that I didn't have to pay it. I put in a pre-order for the R1S with the standard range battery and dual motors, even though the increased cost was a surprise. The LFP was a surprise too, though. I think just being able to leave the vehicle set to charge to 100% all the time makes a lot of sense for people who don't want to put thought into what they need to do for the vehicle to maximize the life of it.

More on topic though, as a corporate tax advisor I believe Tom is correct, especially when you read the actual text of the code that requires an "open" area. Even if you could argue that the frunk space should be taken into account in terms of length (I do not believe that is the correct reading or the intent of the language but that doesn't mean you couldn't argue otherwise), I do not believe the frunk could be viewed as "an open area" or "designed to be used as an open area", in which case the bed is the only relevant space.

Caveat - I have not spent any significant time looking at this and you should consult your own tax advisors, as they may be willing/able to take an alternative position.

View attachment 2123

There's nothing stopping you from Section 179'ing the whole truck, but if you get audited they will catch your mistake and you will have big money fines with interest as a consequence of it.

 

[Tom E-Tron]

Not trying to be argumentative with this question, but does Rivian really still have a better ethos after the stunts they pulled around pricing? I know they did a mea culpa but it seemed like it got pretty toxic for at least a moment. Have all the rave reviews turned the tide or is the bar just really low?

I'll admit I regret not placing a reservation for the R1S prior to the price hike. I don't see a scenario in which I would purchase the R1S over the Hummer but I have been second guessing with all the glowing reviews of the R1T and the growing number of folks who seem to favor the Rivian over the Hummer. That said, I view the price hike as a large mark up and am not willing to pay it knowing most folks are getting the same vehicle for significantly less.

More on topic though, as a corporate tax advisor I believe Tom is correct, especially when you read the actual text of the code that requires an "open" area. Even if you could argue that the frunk space should be taken into account in terms of length (I do not believe that is the correct reading or the intent of the language but that doesn't mean you couldn't argue otherwise), I do not believe the frunk could be viewed as "an open area" or "designed to be used as an open area", in which case the bed is the only relevant space.

Caveat - I have not spent any significant time looking at this and you should consult your own tax advisors, as they may be willing/able to take an alternative position.

View attachment 2123

Here is the thing about Rivian, and their huge mistake on pricing. Everyone who has any clue about the automotive industry knew Rivian underpriced their vehicles at launch, and there is a reason that no other manufacture offers anything close for the same price. Rivian is a smaller truck, but the SUV version is right in the heart of the premium SUV market. We knew they were going to raise prices at some point to make up this deficit, and also correct for rising material and labor prices, but they really f---ed up the way they went about it. RJ realized though, ate crow, and reset the old prices, as far as I am concerned no harm- no foul. Now the trucks are priced where they should be and the reservation holders get a bonus for their faith at the expense of investors who are paying for this bad pricing strategy.

On Section 179, it was rewritten to eliminate people from buying lifestyle vehicles and calling them work trucks. Hummer H2, was the first SUV that was on congress's radar, and then it was the Tesla model X which my realtor and many others bought mainly because of the ability to deduct, which is in essence a 40% discount for high income earners. Its exactly how I looked at heavy equipment, I bought stuff we really did not really need, because of the tax ramifications.

Section 179 was established to encourage businesses to upgrade equipment and therefore productivity, and as a result generate more revenue and pay more taxes.

 

[Tom E-Tron]

I'm willing to blame the pricing fiasco on Rivian being a publicly traded company now. As long as RJ is at the helm, I think they are going to stay true to their ethos of building adventure vehicles and trying to minimize the ecological impact of them. The R1T is totally worth the cost increase, and I just consider myself lucky that I didn't have to pay it. I put in a pre-order for the R1S with the standard range battery and dual motors, even though the increased cost was a surprise. The LFP was a surprise too, though. I think just being able to leave the vehicle set to charge to 100% all the time makes a lot of sense for people who don't want to put thought into what they need to do for the vehicle to maximize the life of it.


There's nothing stopping you from Section 179'ing the whole truck, but if you get audited they will catch your mistake and you will have big money fines with interest as a consequence of it.

These days accountants check the VIN, and it registers as qualified not. Save thing on EV tax credits, its tracked through the VIN

 

[Dark-Fx]

These days accountants check the VIN, and it registers as qualified not. Save thing on EV tax credits, its tracked through the VIN

Your account sure isn't going to approve an improperly taken credit of that size, but you can do your own taxes.

 

[Tom E-Tron]

Your account sure isn't going to approve an improperly taken credit of that size, but you can do your own taxes.

Nah, my taxes are somewhat complicated, with multiple businesses, rentals properties, etc. I mean I could do it, but my time is better spent on things I am good at and that make money. I send out my payroll and taxes, its just easier.

 

[Dark-Fx]

Nah, my taxes are somewhat complicated, with multiple businesses, rentals properties, etc. I mean I could do it, but my time is better spent on things I am good at and that make money. I send out my payroll and taxes, its just easier.

Just think about how much section 179 you're missing out on here

 

[Tom E-Tron]

Just think about how much section 179 you're missing out on here

I get close to the max almost every year, but I do not cheat on anything that I know of, there is no reason to, there is enough money to operate in a legitimate fashion. For 2021 I started a new machine shop business, which I am producing billet cylinder heads now, and programming an engine block, planning to cut a fully water jacketed billet big block chevy sometime this summer. CNC machining is a great business, just load the machine, and leave for 8 hours letting it cut, come back and re-fixture and leave again, no employees, and machines never ask for a raise or health insurance, although it does use more electricity than I expected. I am going to add a couple more machines as soon as I can get the utility to upgrade my electrical service.

 

[1442]

Look at what a Mercedes G63 retails for about $160K. People will pay double this price, myself being one of them. I actually have 2 of them. This Hummer EV has WAYYYYYYYY more tech and cool features than my Gwagons have. Which is another reason why, this truck will be a $350k-$500k vehicle by the summer time.