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From my experience, the people who are able to most easily deduct a car as a business expense are sales people. They will often put 20,000 miles a year on thei
by chiph 14y ago
From my experience, the people who are able to most easily deduct a car as a business expense are sales people. They will often put 20,000 miles a year on their company car as they travel around their territory and call on customers.
Which makes the 36,000 miles allowed under the Tesla 3 year lease problematic -- they'll have to pay 25¢ a mile for those extra 24,000 miles, or $6,000 at turn-in time. Even if they prepaid those extra miles at a cheaper rate, it'd still negate the advantages of the cheap(er) lease from Tesla.
- pc86 14y agoThis isn't a traditional lease, though. If you read the original article about the "new" financing product, you are purchasing the car. This makes you eligible for the tax credit(s). After three years, you have the option of (a) doing nothing and paying nothing besides your normal payments. After all, you bought the car. (b) selling the car back to Tesla. You are not obligated to sell it, but if you want to, Tesla is obligated to buy it back. If you sell it to them you then pay the penalty. So this hypothetical salesman need only not sell it to Tesla, or sell it to someone else after the tax credit period (which I believe is amortized over three years or something).