Tax Write Off

[Douglas Stockley]

I've ordered my Tesla with an arrival date of early January and want to write of 100% of the vehicle as a lease. but from what I've been told the Tesla is not a conventional lease program. Can anyone explain how they are writing off their vehicle? From what I understand it has to be a lease in order to write off the entire amount. If not I can depreciate the car but I was told that there's a cap on depreciation for a luxury automobile.

Thanks,
Douglas

 

[swaltner]

IANAL and IADNATL (I Am Definitely Not A Tax Lawyer), but if the deduction that you are wanting to do requires a vehicle lease, Tesla's program will not help you. Tesla's program is that you finance the vehicle PURCHASE (you are on the title, not the finance company) through a select group of companies and for that you get a guaranteed buy-back price. Tesla's program is NOT a vehicle lease. It gives the ability to return the vehicle at the end of the "trial period", but you are purchasing the vehicle.

Several years down the road after Tesla has some valuation history on used vehicles, Tesla should be able to offer true leases.

 

[bhuwan]

like most of us, you are **** outta luck. Sorry .

 

[David_Cary]

IADNATL - but you can purchase a vehicle and then lease it to your business if that is what you want to do. I have a partner who would buy cars in cash and lease to the business (at a fair market value). Sure - you are supposed to pay taxes on the personal use of the vehicle but that is probably true whether you have a conventional lease or not.

So you buy car for $90k. You act as the leasing company and charge your business $1500 a month for the lease. I am sure it gets more complicated than that and it isn't something I do. A leasing company certainly does not need to be the car manufacturer. If people really have a problem writing off the lease, I am sure that someone could create a leasing company to lease the Tesla. All you do is set the residual to 40% after 3 years to cover the risk of Elon/Tesla Bankruptcy. The huge savings in taxes would make the extra $150 a month in payments worth it (and you would get it back in the end).

Even Tesla's website uses a tax deduction in figuring the TCO. So really are people who own businesses and use the car for business really not writing it off just because they don't have a conventional lease????

 

[bhuwan]

IADNATL - but you can purchase a vehicle and then lease it to your business if that is what you want to do. I have a partner who would buy cars in cash and lease to the business (at a fair market value). Sure - you are supposed to pay taxes on the personal use of the vehicle but that is probably true whether you have a conventional lease or not.

So you buy car for $90k. You act as the leasing company and charge your business $1500 a month for the lease. I am sure it gets more complicated than that and it isn't something I do. A leasing company certainly does not need to be the car manufacturer. If people really have a problem writing off the lease, I am sure that someone could create a leasing company to lease the Tesla. All you do is set the residual to 40% after 3 years to cover the risk of Elon/Tesla Bankruptcy. The huge savings in taxes would make the extra $150 a month in payments worth it (and you would get it back in the end).

Even Tesla's website uses a tax deduction in figuring the TCO. So really are people who own businesses and use the car for business really not writing it off just because they don't have a conventional lease????

the 1500 to you is considered income. you can still only write off a certain amount of value of the car. payments cannot be written off, interest on those payments can.

Not an accountant so always talk to one.