Vehicle Tax Decision — Personal vs. Business
A practical walkthrough of US and Kentucky vehicle tax rules, worked examples, and a calculator comparing personal ownership plus mileage reimbursement against business ownership with Section 179 and bonus depreciation.
Should you buy that car through the business? The rules that actually drive the decision — the §280F luxury-auto depreciation caps, the 6,000 lb GVWR exemption that lets heavy SUVs and trucks escape them, §168(k) bonus depreciation, and the gotchas that wreck plans (no contemporaneous mileage log, commuting is never deductible, personal use of a business vehicle becomes W-2 wages).
Four worked examples below — a $45,000 Accord, a $90,000 Tahoe, a $70,000 Tesla Model S, and a $95,000 Rivian R1S — cover the range from "buy personal, reimburse mileage" to "business ownership, strongly indicated." Then a calculator to run your own numbers over a five-year hold, comparing business ownership (actual method plus §179/bonus) against personal ownership with mileage reimbursement from the business.
Louisville / St. Matthews, KY. 2025–2026 rules reference only — not tax advice. Confirm with a CPA before you buy.
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