333. Tesla

My wife ordered Tesla Model 3 (Base model) a few weeks ago. (Don’t confuse it with Tesla Model S, which is a much more expensive model!) It is scheduled to be delivered anytime in the next 2 weeks. When Jennifer became a partner in her firm, she started receiving a “car allowance”, which we have been using as an extra income for big purchases or investments. But as Jennifer’s business tax began to increase (as a partner in her firm, she had to incorporate herself), her accountant recommended increasing business expenses to reduce business tax.

Given the superior tax incentive for EV compared to gasoline vehicles for businesses and the big recent drop in Tesla price, we felt that purchasing Tesla would be a fair business decision. So we decided to channel the car allowance to what it was intended for. We traded in our 2014 Civic and the car held up its value pretty well. As the Tesla will be purchased under her corporation name, all her car expenses will be deducted as her business expenses, based on the percentage of the car’s business usage. Jennifer drives often to sites and client meetings that are far from home. As she doesn’t get reimbursed for gas, so we are hoping gas-saving will be great.

As the car must be used more than 50% for business use annually, I probably won’t get to drive it a lot. (But when I do show up in Tesla, just remember it is Jennifer’s company car!) For those who are interested in EV, if you find Jennifer in a good mood, you might be able to ask her for a test drive 🙂