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2022 Mercedes-AMG G63
Features

Here are four great ways to write off car ownership on your taxes

There’s no doubt that car ownership is expensive. Whether it’s the initial purchase, registration, and insurance, keeping it fueled up, or regular maintenance, nobody would say it’s a financially burden-free part of our daily lives. Though, there are a handful of methods of making car ownership a little easier on the wallet, which range from saving a few hundred dollars, to potentially thousands, and all via something that many regard as a financial (and sometimes emotional) burden in and of itself: Income tax.

Though, there’s a big caveat that doesn’t apply to everybody: Most of the following money-saving methods discussed here are only applicable to self-employed individuals. You know, those of us who need to fill out much more than the IRS’ good ol’ 1040 EZ form. However, there are still some great benefits for any employment status—let’s outline four ways that you could potentially write off car ownership.

The 2021 Land Rover Range Rover
Image credit: Peter Nelson

Gross vehicle weight rating

Gross Vehicle Weight Rating (GVWR) is a measurement of the entire weight that a vehicle’s chassis can handle, including its own curb weight plus any passengers and all their stuff. Then, thanks to the IRS’ Section 179 for self-employed folks, a trunk and/or bed full of cash, too.

According to tax professionals, Jackson Hewitt, the qualifying GVWR for Section 179 heavy vehicles is over 6,000 lbs. This allows you to potentially write off all of the purchase price. There are a few caveats, though, such as only qualifying for the year of purchase. After that, it follows standard depreciation guidelines.

The best example is the current Mercedes-AMG G63, also referred to as the G-Wagon, G-Wagen, or Big Angry Boxy Boy, and its GVWR is 7,056 lbs. This brute’s become the poster child of rolling around in a big luxury truck for surprisingly little money… as long as those miles are being accounted for business use, of course.

For more on the specifics of this loophole—er, self-employment benefit—consult a tax professional. I’m just here to help get the thinking juices flowing.

The 2021 Acura TLX A Spec
Image credit: Peter Nelson

General business expenses in motion

Section 179 requires some finesse with the rules that are probably best left for an accountant. But there are other easier-to-follow income tax benefits for those who claim business use of their ride, or rides.

By this, we mean such expenses as: Car insurance, gas, charging, tolls, parking, maintenance and tune-ups, registration fees, interest paid on car payments, depreciation, as well as lease payments and fees. These can really help a small business owner out, as long as they take all of the combined figures above and multiply them by the percentage of business use of the car.

When it comes to figuring out that latter bit, it’s easy: How many miles are spent behind the wheel for business use? If 5,000 miles were used for business, and you drove 10,000 miles that year, that’s 50 percent. But it also gets tricky, as one could come up with some truly creative ways to justify such a percentage. 

Again, consult someone with the proper certification in this arena. Especially if you’re including the miles you drove while trying to figure out a weird noise that your car developed, and might be able to write a blog about… which I may or may not have considered doing myself.

2001 B5 Audi S4
Image credit: Peter Nelson

Standard mileage rate

This one’s pretty simple and straightforward: Any mileage traveled for work in your personal car—that hasn’t been reimbursed by an employer—could be up for grabs on your yearly income tax. The best part about this deduction is anybody can claim it. You don’t have to be self-employed like all of the write-offs mentioned above, though activities like commuting don’t count. It’s best to visit the hyperlinked IRS website above and learn exactly what kind of mileage counts.

To claim it, multiply the miles traveled by the IRS’ standard mileage rate, which is 65.5 cents per mile for 2023. It may not seem like much, but it could certainly add up, as 1,000 miles traveled for work could be a hearty $665 deduction. But once again, consult a tax professional before running the numbers and penciling this one in on your yearly income tax documents.

The 2024 Jaguar I-Pace EV
Image credit: Peter Nelson

Electric vehicle incentives

Tax credits on electric vehicles have been a thing for a few years now, and for any employment status, but 2023’s a bit different. According to the IRS, you could receive as much as a $7,500 credit for purchasing a new EV in 2023, which certainly ain’t nothing. There are a few qualifiers, such as whether it meets the IRS’ defined critical minerals requirement, how many kilowatt hours the battery possesses, as well as some limitations on household income—it gets a little complicated.

Then, MSRP comes into play as well. Vans, SUVs, and pickup trucks can’t exceed $80,000, and any other type of vehicle can’t exceed $55,000. This isn’t the greatest news, as new, non-truck EV prices can exceed that $55,000 figure pretty quickly in 2023.

But you don’t necessarily have to buy new to get a little money back: Used vehicle purchases can qualify for up to $4,000 in tax credits, and PHEVs get a little love, too.

Finally, there are other state-based incentives out there as well. California’s Clean Vehicle Rebate Program was a thing up until recently, which gave consumers who purchased or leased conventional EVs or PHEVs up to $7,500 in tax rebates. There’s no word on whether it will come back, but there are still more localized rebates to look into, so surf the web and see if you qualify based on your own state, county, or city.

Proceed cautiously

If there’s one overarching theme to all of this, it’s to be cautious. Not only so you don’t get in trouble with the IRS, but also so that I don’t get in trouble with you and your lawyer. Use this as a jump-off point, think about how your vehicle’s use could save you a little money on your taxes, save your receipts, record your mileage, and consult a tax professional before diving in. There are some other extra-fine-print methods, too, so be sure to ask plenty of questions.

For even more context regarding writing off vehicle expenses, The Smoking Tire Podcast had a great chat with a CPA about the subject a year or so ago. Check it out:

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The 2024 BMW X2
Buying GuidesFeatures

Here’s everything we know about the 2024 BMW X2

BMW and their X series vehicles are nothing new. The original X5 debuted in 1999, not long after we had the X3 in 2003, then the X6, and so on with the various other X models. But the newest one is the latest generation of the BMW X2 lineup, based on the same architecture as the BMW X1 and the Mini Countryman. The first generation F39 BMW X2 was produced from 2018 to 2023, with an LCI (BMW for facelift) in 2021. It sold over 380,000 thousand worldwide. And it looks like that was enough for BMW to continue making a whole new version for 2024. It’s something we all hoped for, as the prior model was pretty good!

The second generation BMW X2 has dropped, and it’s immediately apparent that BMW wants the sports activity coupe to stand out from its competition. Didn’t matter how. The lines are more pronounced and acute. It produces an almost boxlike look that impresses BMW’s new design language onto whoever sees it, with the aggressive front end and large grilles that seem like if it wanted to, it could swallow up all the world’s oxygen without hesitation. While the previous generation X2 lacked the aggressive slanted rear hatch most of these crossover coupes have, the new model has no shame in showing off its coupe styling.

If this is the sort of look you like in your crossover, um, sorry, “sports activity vehicle,” then the 2024 BMW X2 might be the right buy for you. So come on through as we break down all the little specs and tidbits we know about BMW’s upcoming not-an-SUV.

2024 BMW X2
image credit: BMW

BMW X2 price and trim levels

So far, the new X2 is available with two trim levels, the xDrive28i and the M35i. The xDrive28i starts at $42,000, and the M35i will base at $51,400. It is set to go on sale in March of 2024.

Standard equipment all modelsStandard equipment xDrive28i ($42,000)Standard equipment M35i ($51,400)
– 7 Speed StepTronic dual-clutch transmission
– BMW Curved Display with iDrive 9
Active blind spot detection
– Frontal collision warning with city collision mitigation
– Lane departure warning
– Active park distance control
– BMW navigation
– Apple CarPlay and Android Auto compatibility
– Sirius XM with 360l and 1-year platinum subscription
– LED headlights
– Dual-zone automatic climate control
– Power Tailgate
– Privacy glass
– Automatic high beams
7 Speed StepTronic dual-clutch transmission
BMW Curved Display with iDrive 9
Active blind spot detection
Frontal collision warning with city collision mitigation
Lane departure warning
Active park distance control
BMW navigation
Apple CarPlay and Android Auto compatibility
Sirius XM with 360l and 1-year platinum subscription
LED headlights
Dual-zone automatic climate control
Power Tailgate
Privacy glass
Automatic high beams
– 20-inch M V-spoke bi-color wheels style
– 873M with all-season non-runflat tires
– Aluminum hexcube trim with ambient lighting
– Shadowline exterior trim
Illuminated kidney grill
2024 BMW X2 Interior looking through windshield
image credit: BMW

BMW X2 interior and technology

The X2 comes with all the tech BMW can offer the compact SAV. The dash gets the newest BMW treatment with their Curved Display, made up of two screens. One 10.5-inch screen functions as an information display for the driver, and another 10.7-inch screen handles controls, both behind a single piece of glass. The latest version of iDrive is available with in-car gaming, video streaming capabilities, and BMW’s cloud-based navigation system.

Most safety features like blind spot monitoring, collision warning, and lane departure are standard equipment across both models. Of course, there are plenty of options to add on, too. Various packages provide hands-free driving up to 40 mph and a live view inside the vehicle. You also won’t need a dash cam anymore, as the X2 can record collision events for you. The X2 also has its own version of Sentry Mode and will use the cameras for surround view to record when the alarm system detects movement around the vehicle, à la Tesla.

2024 BMW X2 with M sport seats
image credit: BMW
Standard interior colorsM Sport seat color
– Black
– Mocha
– Oyster
– Red and black bi-color
– Atlas grey and smoke white bi-color
– Black with blue contrast stitching
Technology PackagePremium PackageDriving Assistance Professional Package
– Convenience Package
– Parking Assistant Plus
– Head-Up Display
– Live Cockpit Professional
– Surround View w/3D View
– Technology Package
– Universal garage door opener
– Interior camera
– Harman/Kardon Premium Sound System
– Extended Traffic Jam Assistant for limited access highways
– Active Cruise Control with Stop&Go
– Active Lane Keeping Assistant with side collision avoidance
– Evasion Aid
– Front Cross Traffic Alert

BMW X2 exterior dimensions and luggage capacity

Measurement2024 BMW X2
Length: 179.3 inches
Width:72.6 inches
Height: 62.6 inches
Wheelbase:106.0 inches
Track width:62.3 inches

Normally, this is where we’d spin off anything beneath that sheet metal into its own interior dimensions table. Unfortunately, such information other than cargo capacity was unavailable at the time of writing. We shall remain vigilant and update this hub with a dedicated interior space section as more information is released.

Luggage capacity:25.3 sq. ft.
Luggage capacity (rear seats folded):51.7 sq. ft.
BMW X4
Image credit: BMW

BMW X2 engine, transmission, and performance

And while the 2024 X2 has grown slightly compared to the old model, it also gained some power. Both trims are equipped with BMW TwinPower Turbo engines. If it’s the xDrive28i you’re after, you’ll get a 2.0 four-cylinder Miller cycle engine making  241 horsepower and 295 pound-feet of torque. And if you want to keep up with your buddy’s E36 M3, you should opt for the M35i, which has the highest output available from BMW’s four-cylinder engine family. It puts out 312 horsepower and 295 pound-feet of torque and even carries over the main caps from the six-cylinder variant. It’ll reach 60 in 5.2 seconds. However, we know this is utter crap as the Germans love to underrate their stats, so expect these hunchbacks to rocket themselves even quicker than advertised.

StatsX2 xDrive28i X2 M35i
Horsepower:241 hp @ 4,500 – 6,500 rpm312 hp @ 5,750 – 6,500 rpm
Torque:295 lb-ft @ 1,500 – 4,000rpm295 lb-ft @ 2,000 – 4,500 rpm
Weight:3,803 lbs3,840 lbs
zero-to-60:approx. 6.2 secondsapprox. 5.2 seconds

Both are standard all-wheel drive, and the 8-speed automatic has been replaced with a 7-speed dual-clutch transmission. The transmission has a built-in mechanical limited slip differential that gives the X2 the ability to send power where it’s needed. This works well with the all-wheel drive to make a vehicle of its size handle much better than one would expect, much like a fattened hot hatchback in a way.

The M35i is sold with adaptive suspension with adjustable frequency select dampers as standard, and so can the xDrive28i if equipped with the M Sport package. The M Sport will also add Sport Steering, with a quicker steering ratio and BMW’s Servotronic speed-sensitive steering.

The brakes are standard floating calipers on the xDrive28i, while the M35i has M Sport brakes with a fixed four-pot caliper in the front. If you want better brakes on the front of your funny little “sports activity coupe,” you can opt for the M Sport package. The X2 will get an upgrade to M Sport brakes for the lower-end model, and if you check the right box, the M35i will get the spicier M Compound Brakes. They’ll come equipped with a grey caliper instead of red and a massive 15.2-inch rotor.

M Sport Package (xDrive28i)M Sport Professional Package
– 19-inch M double-spoke bi-color wheels style 871M with all-season non-runflat tires
– Shift paddles
– Adaptive M suspension
– M Sport Brakes with blue calipers
– Aluminum Hexacube trim with Ambient Light
– M Steering wheel
– Aerodynamic kit
– Shadowline exterior trim
– Mirror caps in black (xDrive28i)
– M Sport Brakes with red calipers
– M Shadowline lights
– Rear spoiler (xDrive28i)
– Extended Shadowline trim
– Optional M Compound Brakes with grey calipers (M35i)

Overall, I’d have to say that the 2024 BMW X2 is a solid, albeit odd-looking, offering. It has numerous options to transform into a somewhat unique entry in a rather bland segment. BMW didn’t specify every color available outside their faux car configurator, but you will have access to the frozen (matte) paint lineup and maybe even individual color options. So go nuts! Order one that isn’t white or dark grey! Perhaps a bright green, and you can pretend you’re driving a miniature Lamborghini Urus.

As for additional specs, dimensions, options pricing, and figuring out how it drives, we’ll have to wait for its Spring 2024 release date to draw nearer. Until then, let’s sit and gawk at the X2 and all its frumpiness.

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