electric vehicle fuel expense


M

Mark Bole

For an all-electric passenger car (e.g. Tesla) used for business (or
charity or medical or moving, for that matter), is the standard mileage
deduction rate one and the same as for gasoline-powered vehicles, even
though the standard deduction is based in part on average cost of
gasoline? I think the answer is "yes".

If actual expenses are used, how is the cost of electricity calculated?
Unlike gasoline, electricity is typically billed at multiple rate
tiers (similar to tax brackets), with much higher marginal costs for the
usage over "baseline". What rate should be used to calculate the cost
of fuel - top marginal rate, or average? And what record-keeping is
needed, since there will not be a gas station receipt. I suppose the
Tesla has an on-board logging program to keep track of charging events,
but is there a print-out available?

Pub 463 is mostly silent on "electric" as a search term.
 
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A

Alan

For an all-electric passenger car (e.g. Tesla) used for business (or
charity or medical or moving, for that matter), is the standard mileage
deduction rate one and the same as for gasoline-powered vehicles, even
though the standard deduction is based in part on average cost of
gasoline? I think the answer is "yes".

If actual expenses are used, how is the cost of electricity calculated?
Unlike gasoline, electricity is typically billed at multiple rate
tiers (similar to tax brackets), with much higher marginal costs for the
usage over "baseline". What rate should be used to calculate the cost
of fuel - top marginal rate, or average? And what record-keeping is
needed, since there will not be a gas station receipt. I suppose the
Tesla has an on-board logging program to keep track of charging events,
but is there a print-out available?

Pub 463 is mostly silent on "electric" as a search term.
I agree that there is nada in the law that prevents the use of the std
mileage rate for an electric vehicle. Gas engine vehicles get anywhere
from 15 mpg to 40+ mpg and the mileage rate is the same.

Each manufacturer can tell you the efficiency rating of the electric
vehicle. Typically, it so so many kwh per 100 miles. I think it is
reasonable to use that efficiency rating and the business miles for
which you have records to determinethe total kwh used. I then believe
you must use your avg electricity rate as there is no way to tell what
electrical devices push you from one rate to another. It gets a little
tricky if you sometimes charge at a public charge station and you have
to pay. In that instance, I belive the station tells you the amount of
kwh used. It would then be a simple exercise to just subtract those kwh
from the total based on the efficiency rating before applying your home
avg electricity rate.
 

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