I bought a Tesla Model Y and it only cost me $33.95.

A few months ago, I came across Graham Stephan's Video "How I Bought a Tesla for $78 Per Month." I was inspired by Graham's video, so I ran the numbers on my own Tesla Model Y purchase.

It turns out, Graham Stephan was right about the INSANE tax brakes for electric vehicle purchases. So after running some numbers on a new Tesla Model Y purchase, and after seeing the Tesla dog mode feature (huge plus for my dog Button), I went on Tesla's website and put down the $100 to order a brand new Tesla Model Y.

For my new Tesla Model Y purchase, I selected white exterior paint, black rims, and standard Tesla Model Y features for the rest.

The total price of the Tesla Model Y was $58,744.76. But while the total purchase price included taxes, fees, registration, and the cost of the Model Y, it did not reflect the tax credits and electric vehicle rebates I got on my Tesla Model Y purchase.

First off, I live in California, so I received, right off the bat, $1,500 for the purchase of an electric vehicle. The $1,500 California rebate was applied directly to my order price of my Tesla Model Y, bringing my cost to $57,244.76.

Next, Tesla owners can take advantage of certain local rebates (as in, an actual cash check mailed to you) for the purchase of an electric vehicle. I live in the San Joaquin Air District zone, for example, and received $3,000 for the purchase of my Tesla Model Y. Crazy!

While everyone seems to be leaving California, I am still here, and living in California does come with additional benefits. One of those benefits was a $2,000 Clean Vehicle Rebate Project check that you get for the purchase of a qualifying electric vehicle. Boom, another rebate.

I financed 100% of the purchase price of my Tesla Model Y, which was $53,790.00. That left me with a down payment of $3,454.76 for my Tesla Model Y. But with my rebates of $3,000 and $1,500, my Tesla Model Y, brand new, actual put my net out of pocket cost of NEGATIVE $1,545.24.... I made money on the initial purchase of my Tesla Model Y. Strange!

Next up are the tax benefits of purchasing a Tesla, or more broadly the tax benefits of purchasing a vehicle for business use.

If you purchase a car for 100% business use, like I did here, you get to write off the full cost of taxes, fees, interest on your car loan, and the depreciation of your car.

I financed the whole purchase price of my Tesla Model Y. I used Tesla financing directly and financed $53,790 over 72 months for 2.49% interest, leaving me a monthly Tesla payment of around $805.05. My total year's interest for my Tesla Model Y was $1,243.75.

Since I am at the 33.3% marginal tax bracket, every tax write off has the real cash value for me of 33.3% times the write off.

So for interest alone, I am saving 33.3% of $1,243.75, or $414.17. I would have to pay that in tax if I did not have the write off!

Next, I paid in sales tax, registration, and fees for my Tesla Model Y of $4,924.76, giving me a tax savings of $1,639.95.

Lastly, the IRS allows you to write off the value of productive assets in business use using something called depreciation. Here, I am able to depreciate $18,100.00 off the value of my Tesla Model Y, giving me a tax savings of $6,027.30.

Adding all my write off values together gives me a total write off of $8,081.41.

My total out of pocket cost for my Tesla Model Y in my first year of ownership was, with my rebates, down payment, and yearly Tesla finance payment, is $8,115.36.

Taken together, my Tesla Model Y cost me, after reducing my cash cost by my write off values above, of just $33.95.

The goal of this video is to talk about why having a side hustle or being self employed can lead to incredible tax savings. I hope you enjoyed!

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