Calculation for Business Deduction in the financing program?

Calculation for Business Deduction in the financing program?

Does anyone know how they're doing the business deduction calculation in the financing program?

Or more to the point - regardless of what they're doing, how do you calculate the business deduction using this financing program? Am I correct in thinking that you can't call it a lease? So what exactly is business deductible? I thought only lease payments were deductible?

I'm asking because I will be using this car for business purposes (about 30% of time time).

DouglasR | April 3, 2013

As I recall, you have two choices: actual expenses or a standard per-mile rate. For actual expenses, you include gas, oil, tires, insurance, registration, etc. You would also include either depreciation or lease payments. All of this is adjusted on the basis of the portion of total use that is for business.

stimeygee | April 3, 2013

So I assume they're counting mostly depreciation in their calculation?

DouglasR | April 3, 2013

Since it is not a lease, you are probably right. But I haven't looked at the numbers.

Frankly, I found the entire calculation disingenuous. They have an entry for the time it takes to pump gas, but not for the considerable time it takes to charge the car (e.g., on trips). They totally leave out $50 per month for the service plan or any charge for the data plan. The "True Cost of Ownership" it is not!

stimeygee | April 4, 2013

I hate to say, but I agree with that. It does seem disingenuous. And a little unnecessary.

The thought crossed my mind that after the NYTimes fiasco, with people reacting to the headline and photo from that original article rather than looking into the details... maybe they said, screw it, let's get headlines that say "$500 a month for a Tesla" and just get eyeballs in to start thinking about it, even if the details don't quite work out.

Total speculation. Not how I'd do it. But I can understand why one might give it a shot.