Leasing a Tesla, Company purchase and more

[strood]

I'm interested in purchasing a Model S or eventually a Model 3. I'm interested in leasing or other options but am unsure of the structure and how it work.

I also have my own PTY LTD company so would be interested in buying it under the company for tax purposes.

I'm also interested in doing the same for the Powerwall as I *think* I could claim it as a business expense as I run an IT consultancy.

Does any one have any experience in these areas or have any tips? I'm meeting with the accountant on Thursday so anything that can inform myself prior the better.

 

[ColinA]

I'm interested in purchasing a Model S or eventually a Model 3. I'm interested in leasing or other options but am unsure of the structure and how it work.

I also have my own PTY LTD company so would be interested in buying it under the company for tax purposes.

I'm also interested in doing the same for the Powerwall as I *think* I could claim it as a business expense as I run an IT consultancy.

Does any one have any experience in these areas or have any tips? I'm meeting with the accountant on Thursday so anything that can inform myself prior the better.

Tesla's own finance (through Macquarie Leasing) is very competitive and offers lots of structures and options. Suggest you give them a call.

 

[paulp]

I'm interested in purchasing a Model S or eventually a Model 3. I'm interested in leasing or other options but am unsure of the structure and how it work.

I also have my own PTY LTD company so would be interested in buying it under the company for tax purposes.

I'm also interested in doing the same for the Powerwall as I *think* I could claim it as a business expense as I run an IT consultancy.

Does any one have any experience in these areas or have any tips? I'm meeting with the accountant on Thursday so anything that can inform myself prior the better.

Here's a big tip for you, don't declare or imply on an open forum that you are going to buy something for a likely less than legit tax claim.

 

[ColinA]

Here's a big tip for you, don't declare or imply on an open forum that you are going to buy something for a likely less than legit tax claim.

I don't think that being interested in buying under a company for tax purposes implies any non legit tax claim. If it is a legitimate tax deduction the company can claim it, and if it isn't, he cant, regardless of whether he buys it through the company. He simply indicated he wanted to be informed before meeting with his accountant.

 

[strood]

Exactly. I said I think I can claim it. Not that I'm going to claim it when it's not legal. Has anyone else bought a Tesla under a company structure?

 

[Homer]

Exactly. I said I think I can claim it. Not that I'm going to claim it when it's not legal. Has anyone else bought a Tesla under a company structure?

One issue you will face, depending on the model/specs you choose, is that the FBT may make it unviable for you to structure it as a business lease. These are quite expensive cars. You'll also need to be able to demonstrate business use of the vehicle which may be more trouble than it's worth. But best to seek specific advice from your tax adviser.

 

[ColinA]

I agree with Homer. I used to buy cars through my company but haven't for some time now for that reason, and in general the government have removed pretty much all the tax effectiveness. I now buy in my own name and claim legitimate business use, which in my case is relatively small. These days a luxury car is not a tax effective "investment", it is a life style choice with discretionary income. The more it is above the luxury car limit, the more that is the case. I'm not an accountant... Others with more accounting knowledge may have a different point of view.

 

[strood]

Call me naive here but what was the typical difference between a company car and owning a car yourself and claiming business expenses

 

[EcoCloudIT]

Log book most likely....I have an ABN and depreciate my car to the maximum of around $57k including interest on the lease (not the principle) and other expense (not many on a Model S). Of course you can always claim the GST either upfront of over the term of the car.

I agree with Colin, anything about the LCT is basically a luxury....however if you're going to splurge it may as well be on a Tesla.

I guess it all depends on your business/personal use of the car as to how much it reduces the car by.

-ECIT

 

[paulp]

Depending on how many km you drive, claiming using the $ per km method might be a better outcome based on an engine of the same kw. This is a bit like insurance though, every situation is unique.

 

[strood]

I'm in the ACT region so not a lot of kms! That said last year I did manage to do 15,000kms through a fe trips to Sydney. With a Model S or 3 I would plan on a lot more trips to Sydney and Tassie so maybe a few more kms once I get it. We'll ill see he's the accountant says about what the best structure is tomorrow

 

[ColinA]

I'm in the ACT region so not a lot of kms! That said last year I did manage to do 15,000kms through a fe trips to Sydney. With a Model S or 3 I would plan on a lot more trips to Sydney and Tassie so maybe a few more kms once I get it. We'll ill see he's the accountant says about what the best structure is tomorrow

All the best, we'll be interested to hear (in general terms!) how you go

 

[strood]

Good news from the accountant. It's not as if I'll be claiming a lot back on the vehicle as I'm not a tradie but he still recommended buying it through the company over personal + business use. I'd go into specifics of I understood them.

 

[houdini]

I looked into this myself and it just wasn't viable. LCT killed it as it was a years lease payments just for the LCT ($25,000) from memory. FBT was also steep and the lease fees and interest made it way less attractive than Tesla's own leasing or even ANZ for a car loan with a balloon payment at the end of 5 years.

 

[ColinA]

Good news from the accountant. It's not as if I'll be claiming a lot back on the vehicle as I'm not a tradie but he still recommended buying it through the company over personal + business use. I'd go into specifics of I understood them.

Very good! I'd be really curious to know his reasoning (without going into personal financials of course)... my experience of the maths was very similar to houdini below.

 

[paulp]

Good news from the accountant. It's not as if I'll be claiming a lot back on the vehicle as I'm not a tradie but he still recommended buying it through the company over personal + business use. I'd go into specifics of I understood them.

you might want to get a second opinion on that advice, especially if you don't have a lot of business use. Did he mention your personal use will result in 50% fringe benefits tax based on equivalent ICE power?

 

[EcoCloudIT]

Yeah, way better to just going personal ownership with a log book to claim a business expense. My business usage is very high (since we have a family car that we get around in with the kids) and I am way better off doing it this way.

-ECIT

 

[strood]

Thanks for the advice I'll follow it up

 

[paulp]

Yeah, way better to just going personal ownership with a log book to claim a business expense. My business usage is very high (since we have a family car that we get around in with the kids) and I am way better off doing it this way.

-ECIT

completely agree. The difference is considerable.

 

[arnyswart]

I had a similar talk with an accountant. They generate fees from handling the fbt and it is a win for them.

When you calculate the numbers it doesn't pan out unless you run a taxi service.