Mostly wrong... If Hummer is purchased as a business vehicle (reservation and purchase in Business Name) section 179 does not apply, because Hummer does not meet the guidelines on layout or bed size. If any business depreciation is taken that the lowers the effective cost and thereby raises your taxable income on the transaction.
Gains made from selling the HummerEv are taxed at your personal tax rate, but remember the income from Hummer is taxed above your ordinary income, likely moving you up a bracket, which can effect other lines such as alternative minimum tax or earned tax credit. (consult your tax advisor)
Section 179 is depreciation used mainly to write off up to the annual allowed deduction as a one time piece of equipment. (Of course a vehicle can be used as equipment). But you do not need to claim section 179 to realize depreciation.
That's a completely and 100% separate item all together from where I was going with it though.
If the truck cost $115k thats an expense for the business. I could do any number of things to rob Peter and pay Paul including taking a larger distribution than necessary to lose money up to the profit of the vehicle. Then I can put whatever my max contribution is of that distribution into a tax deferred account, think self directed 401k/IRA/HSA/504 plan.
This is just one way of what I could think of many to not pay taxes through the business or off the extra distribution. You could even do it without distribution if you wanted to take the profit and buy another piece of equipment to then take the depreciation on. There are endless ways to tax evade here.. nothing I said was even partly wrong.
And since most executives that make over $500k a year have the option to do options/Roths et al as ways of gaining income or sheltering taxes I would never be worried about higher income earners (thinking above $300k-$500k annually) going up a bracket due to this purchase.
Ultimately my impression is that the majority of people buying this truck have household incomes of less than $130,000 per year, especially since the financing word gets brought up so often.
