They've added something to the cost calculations on the Design page. Now there's this:


If you sell Model S at the end of three years, you'll experience an added tax benefit."

What do they mean by that, do you think? I ask because I'd like to know what tax benefits they might be referring to, and whether I can take advantage of them. I think they're still referring to a business tax benefit based on where they put it.

David Trushin | April 4, 2013

Haven't got a clue. But the math is fuzzy enough that it could mean anything. Although it's good that they have a financing plan with guarantees, I think the way they have presented it makes it sound a little shady.

jat | April 4, 2013

I think they are just amortizing it across 3 years, and if you sell it earlier you will get a larger benefit per year.

Most of those savings seems pretty silly anyway.

gr3yh4t | May 1, 2013

Per CPA:

The added tax benifit is based on the estimated loss deduction that could occur when the car is sold.

Depreciation deductions for company cars are restricted, the company’s tax basis of the car (the cost of the car minus the depreciation claimed for it) is often higher than the car’s market value. This means the company can claim a loss deduction on the sale of the car because taxable gain or loss from a sale is determined by subtracting the tax basis from the sale price.

DTsea | May 1, 2013

I would assume it is because the federal tax credit applies to the OWNER. If you BUY the car you get the credit. If you LEASE it- maybe not. So the plan is structured as a purchase with a return right, not a lease with a balloon payment.

Just speculating.

gr3yh4t | May 1, 2013

The Loss Deduction at sale is in addtion to the other Tax savings for the Tesla if it used for business more than 50% of the time.

Assumptions are 40% effective tax rate and 80% business usage:

They are saying that you would realize 126/Mo Tax savings over 3 years if you sold it back with the 43% residual value option. Resulting in a business related loss of around 13-15k in the year you sell the car back. So the 4-5k (1/3 of the loss give or take) tax savings are amotorized over 3 years