Can you do math? If so don't lease unless you are worried about potential long term resale and want to insulate yourself from that risk.
You can only write off the portion of the car that is directly used for business purposes, you cannot write off any commuting mileage. It would probably be easiest for you to take the .59/mile deduction and keep a log of your business miles. You can then take this deduction whether you lease OR buy.
Okay here's my math, its obviously estimates but I am pretty sure its close numbers.
Can any of you give me input I am torn between Leasing or Buying, I am coming from a lease, I like to usually change every 3-4 years however I do see Model 3 as being fun and me able to stay with it longer but I don't really see a huge advantage of the lease if it's really only about 1-2k less in total out of pocket cost over 3 years compared to a 72 month loan payment and paid costs at 36 months. Also the 3750 refund for buying makes buying actually cheaper... I think the question is if I buy and I decide to trade it..would I really be upside down? Based on amortization I shouldn't be...and if I break even...its the same as leasing..since leasing doesn't give you money towards another vehicle..
Lease Black M3 LR AWD 15k miles with AP
Due at signing $5376. $681/month
Total payments in 36 months $35222.65
I included 7.95% sales tax on $50,700 price of car on lease
and about $650 per year of Prop Taxes
Buy Black M3 LR AWD with AP
Down payment $5376. $714/month (Tesla financing, so a little less with CU financing)
Total payments by 36th month $36410.65
I included 7.95% sales tax on $50,700 price of car on lease
and about $650 per year of Prop Taxes
Plus $3750 refund for purchase, which would actually drop the total payments for buying lower than leasing I believe. Unless the sales tax is paid partially for lease I don't see how leasing is better even if I was to trade in the M3 with a 72 month loan at the 36 month mark.
Difference between both by 36 months is $1188. Does sales tax for the lease
get charged at the full 7.95% of the total cost of car or only for the
portion of the depreciation you pay on the car for 36 months? If you only
pay for a part of the car cost then it would be a much bigger savings compared
to buying.
Any input would be greatly appreciated