January 4, 2021
A lot of us dream of owning a Tesla. Oh, the gas we would save with it, oh the environmental impact it would have. The extra functions, the little corky dance that Elon Musk has programmed and hid in the car’s inner wirings.
Of course, there are other perks of owning an electric car besides saving the earth and being cool in the process
If you purchase a plug-in electric car (such as a Tesla) you may qualify for a tax credit. An electric tax credit by the government was introduced in 2008 to spur the electric-car industry. For every new electric vehicle purchased by taxpayers, the government offers a non-refundable tax credit of 7.500. You can claim the electric vehicle tax credit using IRS Form 8936.
You get a credit of at least $2,500 for electric vehicles purchased after December 31, 2009. The tax credit can increase up to $7,500 depending on the following:
- The kilowatt capacity
- The number of electric vehicles the manufacturer sold
You can get an additional $417 for each kilowatt-hour of battery capacity in excess of 5-kilowatt hours.
Many states also offer incentives for purchasing an electric car. This can include tax credits, right to carpool lanes, and more. On the website of the Department of Energy, you can find out which country legal guidelines may also apply to you.
Mileage allowance for electric cars
According to PlugInAmerica.org, “in order to equal the price of the average gasoline car’s fuel costs, the price of electricity would have to be 2.5 times the national average, and cost 31 cents per kWh.”
If you drive an electric car and your company has a reimbursement plan, you should stick to these numbers when negotiating your allowance. This also means that electric car drivers are paying less for miles in general. 😉
Fees may be even cheaper all through off-peak times. The PEV resource center reports that “off-peak electricity rates of about $0.10 per kilowatt-hour (kWh) it is the equivalent of driving on gasoline that costs less than $1 per gallon.”
Tax deduction on your business mileage
According to the IRS, depending on the type of your business you can deduct your business-related expenses. Such as travel and transportation.
By keeping sufficient documentary evidence of your expenses you can write off all of the following: depreciation, lease payments, registration, garage rent, licenses, repairs, gas, oil, tires, insurance, parking fees, tolls.
However, you need to prove that these expenses are actual business expenses. Therefore, you need a mileage log for your business mileage deduction.
Track your trips and refuelings on the go with the MileageWise mileage tracker app or your car’s built-in GPS system (with an app for data retrieval) and perfect them on the web dashboard!
If your car (eg. Tesla, Audi, Volvo) already has an app that creates you a base for mileage logs, you can import those documents and edit them quickly and easily in MileageWise!
The Built-In IRS Auditor examines 70 logical conflicts with our smart algorithm, so your recommended mileage log will be IRS-proof and meet the expectations, without a doubt.
With these innovative developments, mileage logging is easy. There’s no need to worry about running the administration anymore. 🙂
Try MileageWise without obligation! The trial period is 30 days with full features. No credit card needed.
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