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Gas tax write off vs electric tax write off

Discussion in 'Model S' started by Periokid, Nov 1, 2016.

  1. Periokid

    Periokid Member

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    Hi, first post. I am close to acquiring a Model S.

    I have a tax question. I use my ICE car for business and write off the gas. It is easy since I buy the gas, have proof of purchase, etc. Is it possible to measure and keep a record of the electric used to power the Tesla and write that off?
     
  2. kirkbauer

    kirkbauer Member

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    I think it would be easiest to take the standard deduction per mile rather than calculating the cost. But if you figure out your energy cost and track energy used each trip I think you can properly document the electricity cost and therefore deduct it as a vehicle expense.
     
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  3. mblakele

    mblakele radial cross member

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    What did your CPA say?

    From what little I know, it might be enough to keep a log of your charging sessions, or the kWh used from the car's trip meter. Your actual electricity usage will be a little higher, but it's difficult to record that without a separate meter and that's probably not worthwhile.

    How expensive is your electricity? USA average cost is supposed to be around 10 cents/kWh, and you'll probably see something like 3 mi/kWh. That's only about 3 cents/mi, more or less according to how you buy your kWh. What about using the standard 54 cents/mile deduction for business driving? I think you'd have to keep a record of all your business miles with dates and odometer readings — but check that with your CPA.
     
  4. Periokid

    Periokid Member

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    We are about 19-20 cents per kWh.
    keeping a log of everything is not going to happen :)
    Since I don't own the car yet, didn't know if the car logged this kind of information.
    Maybe some kind of meter to the outlet? Something simple. I have no idea, this is all new to me.
     
  5. jbobmurph

    jbobmurph New Member

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    Is there a reason you're not just taking the per mile deduction, rather than itemizing costs?

    Absent an outlier of a case, it's almost certain the per mile deduction will save you more.
     
  6. kort677

    kort677 Active Member

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    considering that charging the car costs around 1/4 of the amount it would cost to fuel an ICE taking the very generous standard deduction could be the wise thing to do.
     
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  7. John5396

    John5396 Member

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    dominating the choice of standard mileage rate and itemizing the vehicle expenses will be depreciation, so the OP may certainly be better off with actuals over standard mileage rate depending on the percentage of personal miles to business miles.
     
  8. CarlitoDoc

    CarlitoDoc Member

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    write off the miles, that's what my CPA would say.
     
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  9. RAM_Eh

    RAM_Eh Member

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    I would get an app for your phone...lots of good ones but I use one called Trip Log. Set it up and forget it...monthly reports an deductions done for you.
     
  10. Periokid

    Periokid Member

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    Does it matter that the car will be leased?
     
  11. kort677

    kort677 Active Member

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    NO
    getting legal advice, accounting advice, investment advice, tax planning advice on the internet is worth what you pay for it.

    if so many of you are running businesses that can sustain writing off the use of a tesla, you should be able to hire professional advisers.
     
  12. Az_Rael

    Az_Rael Supporting Member

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    Emotorwerks makes connected home chargers that track your kWh use. EV Charging Products which provide smart grid management.

    That might work best for tracking kWh used. You can also have your car set up on a separate meter or sub meter with the electricity company. Then it's even simpler since you will be billed separately for the costs, but it will be more expensive to set up.
     

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