Legal strategies to reduce and eliminate taxes on cars

DISCLAIMER: PLEASE CONSULT YOUR PERSONAL ACCOUNTANT AND ATTORNEY BEFORE IMPLEMENTING THE BELOW STRATEGIES. THEY KNOW YOUR PERSONAL, SPECIFIC FINANCIAL SITUATION BETTER THAN WE DO. 

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Why are more exotic cars registered in Montana than anywhere else?

As you likely know, Montana is a tax haven. 

People can register cars, trucks, RVs, ATVs, and more and pay no tax.

On a $200,000 Lamborghini Urus, thats an instant $12,000+ in savings. 

But what if this could be taken even further, and triple those savings?

There's a section in the US Tax Code called Section 179...

It allows for a "bonus depreciation" tax write off for businesses of 40% of the value of a 6,000+ LB vehicle in the first year. 

This is because at that weight the vehicle is considered "equipment" - and if a business is able to leverage one of the many justifications for why it might need such a vehicle (simpler than it sounds), the additional savings can be huge.

For example, on that $200,000 Urus, the 40% depreciation comes out to $80,000.

If the business does $500,000 in revenue, after the tax break, it's taxed on $420,000. Nice. 

That savings, assuming a 30% tax rate, is $24,000. 

The more expensive the car (a top-of-the-line Phantom can cost as much as $800,000, for example) the better the savings. 

Some popular cars for this include the Bentley Continental GT Speed, Rolls Royce Wraith, Dawn, Phantom, & Cullinan, Lamborghini Urus, Mercedes G63 & S63, and many more, and it can be used on new or pre-owned cars. 

It is possible to implement both of these strategies on the same car - although you may not need or even want to. 

The point is, there are incredible, legal loopholes that exist to save on what is typically the biggest expense associated with buying a car aside from the vehicle itself. 

And I break them all down in Exotic Car Hacks Part 2. 

By the way, you can drive a "Montana" car in your home state, on your home tags. Yes really. 

These advanced videos will explain how.