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Canadian tax strategies for writing off Cybertruck

Heynow999

Member
Nov 4, 2013
43
37
Toronto, Canada
HI

I want to buy the Cybertruck 3 motor when it is available. I am thinking about tax strategies to write it off.

Typically I don't buy new vehicles, But I have a model 3 and I can see the savings in repairs and maintenance (and fuel of course) are a good arguement for buying the Cybertruck, and keeping it for a long time. So the question is how to do it cost effectively. I haven't leased a work truck in a couple decades so I am looking for ideas on how to do this. The first thought I have that is a change from the ordinary is to stretch the loan out as long as possible because the Cybertuck should last a long time because of the stainless steel body and new million mile batteries. You will not end up underwater on the loan as you would on a typical ICE truck. Also it seems that the amount you can deduct for a vehicle seems very low, so if you can strech it out over a longer time you can get more back from the deduction. As long as you can get low interest rates who cares how long the loan is?

So here is my first idea and I would like comments on it as I dont have a lot of experience in this area. I have a small business that is unincorporated where I legitamitely will use the Cybertruck for about %85 business. What if I were to take as long a lease as possible (if Tesla will even lease it?) to take advantage of the lease write off, then when the lease is done, buy out the truck and then write off the financing and depreciate the truck?

Comments?
 

Biscuitman

Member
Oct 22, 2019
300
135
Ottawa
  • Informative
Reactions: SmartElectric

camalaio

Active Member
May 28, 2019
1,483
2,098
Vernon, BC, Canada
I'll address just the Tesla points because the rest I have no idea about.

Aside from the "million mile battery" not being in any Tesla vehicle yet, we have no reason to think it's coming to the Cybertruck. In fact, the only thing we have evidence of is that the LFP batteries made by CATL will be used in the China-made Model 3, and only the standard range variants (these batteries take up more room). Not a great chance of that coming to a USA-built Cybertruck at the moment. The 3 motor variant with the extra gigantic battery capacity probably doesn't have the space for these to be LFP batteries. Maybe the single or dual though, since the same battery space could be taken up by the LFP cells instead for less capacity. Pure speculation, and doesn't address the China vs. USA manufacture.

Second, Tesla doesn't manage the loans, they farm them out to banks. There is no "0% interest", not even "0.9% interest" loan on a Tesla vehicle in Canada. These low interest rates on vehicles are done by the manufacturers (sort of), not the banks. With a bank right now, I think the best rate is closer to 3.5% (that may have changed recently for obvious COVID reasons).

Third, Tesla might not lease them out. They still don't offer leasing for the Model 3 in Canada. Even if they do, they might pull what they did in the US and not let you buy out the vehicle at the end of the lease term. Tesla is also well known as being one of the worst vehicles to lease when considering the value vs. purchasing.

Fourth, I'm pretty sure the longest vehicle-backed loan one can get is 6 years.
 

coolmanfever

Member
Dec 1, 2019
536
420
toronto
The write off is 55,000 Plus all applicable taxes= $62,5000,00. I did it for my purchase and all I can say is thank you Justin Trudeau !

kinda off topic but it may help for those people who own their own business trying to decide to buy SR+ vs LR AWD model 3

For long term, do you save more by taking $5000 rebate upfront by buying SR+ value under 55K or write off LR AWD value over 55K ? Not sure if you work out the number
 

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