I'm considering a Tesla S. I own my own small business, and I'm evaluating the business lease and finance repurchase options. I searched the forums and came across this:
In my business I payed for my Tesla personally and took the Tax credit. My business then reimburses monthly for a car allowance that is proportional to the lease value of the car.
I get the best of both worlds. I own the car personally and I get the tax credit and I get reimbursed for the monthly payment with pre-tax dollars. The amount you can get reimbursed is set by an IRS table that is proportional to the value of the car.
This does indeed seem like the best of both worlds. According to page 25 of IRS publication 15B, a car with fair market value of $100k would have an annual lease value of $12,437.50 if 50 percent of my use of the car is business. The annual lease values are based on a 4-year term, and according to the publication, "these values will generally stay the same for the period that begins with the first date you use this rule for the automobile and ends on December 31 of the fourth full calendar year following that date."
This means I can purchase the Model S, and then reimburse myself $1,036 per month for the first 3 years. At the end of that 3 years, I can sell the car back to Tesla for about the same that I owe on the loan (~$47k).
The loan payment would be about $1,400/mo for 72 months at 2.74% interest rate. With this arrangement I'd be paying $1,036/mo of that with pre-tax income, and $364/mo of it with after-tax income.
Am I getting this right?