Purchasing Tesla for Business and Tax Write off in Canada

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Chansoo Byeon

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#1
Hi guys,

Do you guys know how to buy a Tesla for business and write off 100% of (55K + tax)? Asking for a friend. Buying Tesla seems to be a no-brainer if you own a business.
Looks like if you want to write it off, you can't get the 5K fed incentive. But no big deal if you are writing off 55K +tax!

Links below - if you know how this works, please let me know!

https://www.canada.ca/en/department...and-expense-benefit-rates-for-businesses.html

https://www.tc.gc.ca/en/services/road/innovative-technologies/zero-emission-vehicles.html
 

FRC

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#3
I'm unfamiliar with Canadian tax law, but in the US, I don't think a Tesla placed an business service would be treated any differently than any other vehicle. Any allowed credits would reduce the cars basis, and this basis would be written off over it's allowable depreciable life.
 

Ed Woodrick

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#4
I don't think that the tax side is any big issue.
But I have heard horror stories from he insurance side of house, insuring a commercial vehicle.
 

garsh

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#5
I'm curious to know the same information for US.
This post was made in the "Canada" subforum. If you don't mind, please go ahead and post your question in the North America subforum (since we don't have a US-specific one). That way, we can keep this particular thread specific to Canada.
 

JohnMon

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#6
Hi guys,

Do you guys know how to buy a Tesla for business and write off 100% of (55K + tax)? Asking for a friend. Buying Tesla seems to be a no-brainer if you own a business.
Looks like if you want to write it off, you can't get the 5K fed incentive. But no big deal if you are writing off 55K +tax!

Links below - if you know how this works, please let me know!

https://www.canada.ca/en/department...and-expense-benefit-rates-for-businesses.html

https://www.tc.gc.ca/en/services/road/innovative-technologies/zero-emission-vehicles.html
Great links!
I just checked my tax software for the 2019 tax year and it shows Class 54 (zero-emission vehicles) as 30%, not 100%. Will have to check into this.
 

Chansoo Byeon

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Jul 13, 2018
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Toronto, Ontario
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#7
Hi John. Surprisingly no one seems to be able to answer this for me. I have reached out to many and my accountant doesn't know either for some reason.
Could you do some more digging and get back to me on this one too?
 

JohnMon

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#8
Nothing new about this that I have seen. My software still shows Class 54 CCA as 30%. Have you seen anything new?