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Tax Deduction when you use gas and electric?

Discussion in 'Prime Main Forum (2017-2022)' started by stevepea, Feb 12, 2018.

  1. stevepea

    stevepea Senior Member

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    Just a question for others who have done their taxes, or will see their tax preparer shortly. Please note that I hand everything over to my tax guy, so I don't know the specifics of this myself.

    But I'm wondering how either pure EV, or EV+Gas cars throws a wrench into what the IRS says you can deduct for use of your car (such as for a small business). If I remember right, isn't there a figure each year the tax preparer uses to figure out how much you can deduct per mile? But isn't that based on the cost of gas? If one uses EV only (or a mix of EV and gas) how will that affect things, especially in the coming years as more and more people hopefully start using more EV? I wonder if the IRS will take this into consideration in the coming years -- and if those in high electric cost states (ie, CA) will only get a deduction based on the "average" nationwide EV cost (which is a lot less than what we pay here in CA). Anyone thought about this?
     
    #1 stevepea, Feb 12, 2018
  2. JimboPalmer

    JimboPalmer Tsar of all the Rushers

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    #2 JimboPalmer, Feb 12, 2018
    fuzzy1 likes this.
  3. Washingtonian

    Washingtonian Senior Member

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    Unless you drive a lot of miles a year, the cost of fuel or electricity to power your car is a small percentage of the cost of the car for the year. I paid about $35K for my Prime and will have only driven it 5000 miles the first year. With first year depreciation of about $9K, insurance and license about $400, the cost of fuel and electricity (about $220 for the 5K miles) is negligible. In other words, it costs me about five cents a mile this year for the energy to drive my car, but the cost of depreciation is closer to $1.80 per mile. Of course, in twenty years I will only have 100K miles on the car and depreciation will be negligible, but I will have other things to be concerned about then.
     
    #3 Washingtonian, Feb 13, 2018
  4. huskers

    huskers Senior Member

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    Dang, you make me look like a gas/electricity hog at 9000 for the year (with a month to go).
     
    #4 huskers, Feb 13, 2018
  5. Hayman66

    Hayman66 Member

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    Don't feel bad. I had 55,000 on my last Prius that was totaled by Hurricane Harvey and it was right at a year old.
     
    #5 Hayman66, Feb 15, 2018
  6. Prodigyplace

    Prodigyplace Senior Member

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    That is gallons, miles, or dollars of electricity? :eek:;)
     
    #6 Prodigyplace, Feb 15, 2018
  7. teamHoffman

    teamHoffman Junior Member

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    I'm at 22,500 today and mine is now 6 months old.
     
    #7 teamHoffman, Feb 15, 2018
    Hayman66 and Prodigyplace like this.
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