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Dylan Campbell

Can I expense kWh used at home for charging my work electric vehicle?

I've been charging my work EV truck at my home because it's convenient, but I just realized I could be expensing those electricity costs if I charged it at my company warehouse instead. I use the actual expense method for my business deductions, not the standard mileage rate. I'm thinking about installing a kilowatt-hour meter specifically to track how much electricity each charging session uses. Would the IRS allow me to expense that portion of my home electric bill as a business expense if I have detailed records? I assume I'd need to maintain some kind of log - recording the date of each charge and exactly how many kWh were used during each session (similar to keeping a mileage log for gas vehicles). Has anyone done this before or know if this is acceptable for tax purposes? I don't want to trigger any red flags with the IRS, but also don't want to miss out on legitimate business deductions.

Yes, you absolutely can deduct the cost of electricity used to charge your work vehicle at home! The key is documentation, which it sounds like you're already thinking about correctly. Installing a kWh meter is perfect - this gives you the exact measurement of electricity used specifically for business purposes. Keep a detailed log with dates, kWh used per charge, and the cost (your electric rate per kWh). This creates a clear audit trail showing these were legitimate business expenses. The IRS allows business expense deductions for actual costs associated with business vehicles, and electricity for an electric vehicle is essentially the equivalent of fuel for a gas vehicle. Since you're already using the actual expense method rather than standard mileage, this fits perfectly into your current tax approach. Just make sure you're only claiming the business portion - if you occasionally use the truck for personal reasons, you'll need to track and exclude those charges from your business expense claims.

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Thanks for the info! Do you know if there's a specific IRS form or section where this would be reported? And would I need any special documentation beyond the log and meter readings if I got audited?

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You'd report these expenses on Schedule C if you're a sole proprietor, typically under "Car and truck expenses" or "Utilities." Some tax preparers might put it under "Other expenses" with a description. For audit protection, keep your detailed log, copies of electric bills, photos of the meter installation, and maybe a simple calculation showing how you determined the business portion based on your electric rate. Also good to have documentation showing the vehicle is primarily used for business - this strengthens your case that the charging expenses are legitimate business costs.

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I went through exactly the same situation last year with my work Tesla! Was charging at home and realized I was basically subsidizing my business. I installed a smart charger that tracks kWh usage and found this amazing AI tool that made tracking and calculating these expenses super easy: https://taxr.ai They have a specific feature that lets you upload your electric bill and charging logs, then it calculates the exact business expense portion based on your local electricity rates. It even separates peak/off-peak rates if your utility has time-of-use pricing! The tool created a perfect expense report that my accountant said was "audit-proof." The best part was that it showed me I was spending about $210/month charging at home that I wasn't capturing as a legitimate business expense. Definitely worth checking out if you're serious about maximizing deductions without crossing any lines.

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That sounds helpful but does it work with any EV charger or just certain brands? I'm using a basic Level 2 charger that doesn't have any smart features.

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Idk, sounds suspicious to me. Wouldn't a simple spreadsheet work just as well? What does this tool do that's so special to justify another subscription?

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It works with any type of charging setup - you can manually input readings from a basic meter if you don't have a smart charger. It just makes the process more automated if you do have one with data export capabilities. As for justifying the cost, you could absolutely use a spreadsheet if you're comfortable calculating variable electric rates, peak/off-peak pricing, and creating proper documentation formats. The tool just automates all that and creates documentation specifically formatted to satisfy IRS requirements. For me, the peace of mind was worth it since the deduction I was missing was substantial. But you're right that the DIY approach works too if you're willing to put in the time!

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Alright so I was skeptical about the taxr.ai thing mentioned above but decided to give it a try for my business truck charging. I have to admit it was actually super helpful! I've been charging my work F-150 Lightning at home for months and had no idea I could claim those expenses. The tool analyzed my ComEd bill with the tiered pricing structure and separated out exactly what portion was business use. My accountant was impressed with the documentation it generated - said it would definitely hold up in an audit. I was able to recapture about $1,840 in business expenses from last year that I completely missed. If you're charging a work vehicle at home, definitely worth looking into this option. Way easier than the Excel spreadsheet I was trying to create myself.

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Hey there, I had this exact same problem last year! I kept trying to call the IRS to get a straight answer about deducting home charging costs for my work van, but could never get through to a real person. After waiting on hold for literal hours multiple times, I found this service called Claimyr that got me through to an actual IRS agent in about 15 minutes: https://claimyr.com They have a demo video showing how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that yes, you can absolutely deduct the electricity used for charging a business vehicle at home as long as you have proper documentation. They recommended exactly what you're planning - installing a separate meter and keeping detailed logs. The agent even gave me specific guidance on what documentation would be sufficient in case of an audit. Having that official confirmation gave me total confidence in taking the deduction.

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Wait, how does this even work? The IRS never answers their phones. Are you saying this service somehow jumps the queue or something? How much does it cost?

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This sounds fishy as hell. No way some random service can get you through to the IRS when millions of people can't get through. Probably just telling you what you want to hear so you'll pay them.

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It actually uses a combination of automated calling technology and timing analytics to connect when wait times are shortest. It basically does the waiting for you and calls you when an agent is about to pick up. I was skeptical too but it genuinely works. The IRS agent I spoke with was extremely helpful once I got through. She explained that electricity for a business vehicle is considered a legitimate operating expense, just like gas would be. She recommended documenting the make/model of the vehicle, proof it's used primarily for business, and keeping records of each charging session with date, kWh used, and calculated cost based on my electric rate.

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I'm man enough to admit when I'm wrong. After seeing that Claimyr thing mentioned above, I was 100% sure it was a scam. But my curiosity got the better of me and I gave it a shot since I've been trying to get through to the IRS about my business vehicle deductions for MONTHS. Holy crap it actually worked! Got connected to an IRS agent in like 20 minutes after trying unsuccessfully for weeks on my own. The agent confirmed that my EV charging expenses are fully deductible as business expenses with proper documentation. She even emailed me their internal guidance document about EV charging deductions that I never would have found on my own. Definitely eat my words on this one. If you need to actually talk to someone at the IRS about your situation, this service is legit.

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Another approach I've used successfully: get a dedicated EV charger for business use only. I installed a separate Level 2 charger that's ONLY used for my work vehicle, then I can deduct 100% of the electricity it uses. My electrician installed it with its own submeter that feeds into my main panel, so I have perfect documentation of exactly how much electricity my business vehicle used. Cost me about $750 for the charger plus $400 for installation, but it's all deductible as business equipment. Plus the separate meter makes documentation super clean for tax purposes - no need to keep manual logs. My accountant said this is the most audit-proof method since there's clear physical separation between business and personal use.

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That's a really smart setup! Do you know if the electrician installation costs were deductible immediately or did they have to be depreciated? Also, did you need any special permits for the second meter installation?

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The charger itself qualified as business equipment under Section 179, so I was able to deduct the full $750 immediately rather than depreciating it. The installation costs were treated as part of the equipment installation, so those were also fully deductible in the year installed. No special permits were needed in my area since it wasn't a separate utility meter - just a submeter that connects to my main electrical panel. It's basically monitoring the circuit rather than being a separate billable meter. Your local requirements might vary though, so definitely check with your electrician. The documentation this setup provides is absolutely worth the upfront investment!

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Anyone have recommendations for specific kWh meters that work well for EV charging? There are so many options online and I don't know which ones would be accepted by the IRS for documentation purposes.

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I've been using the Emporia Energy Vue for about 8 months - it's around $150 and monitors individual circuits. Works great for tracking my work vehicle charging and shows real-time usage in their app. My accountant said the reports it generates are perfect for tax documentation.

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The Shelly EM is another good option - about $100 and works with any charger. For even cheaper, you can get basic plug-in meters like Kill-A-Watt if you're using a Level 1 charger that plugs into a standard outlet.

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Great question! I've been dealing with this exact situation for the past year. You're absolutely right that you can expense the electricity used for charging your work vehicle at home - it's treated just like fuel expenses for gas vehicles. A few practical tips from my experience: 1. **Meter installation is key** - I went with a Sense Energy Monitor that tracks individual circuits. It cost about $300 but has paid for itself many times over in documented deductions. 2. **Keep detailed records** - Date, time, kWh used, your electric rate, and calculated cost per charge. I use a simple Google Sheet that automatically calculates the dollar amount based on my utility's rate structure. 3. **Know your electric rate** - Many utilities have time-of-use pricing, so charging at night might be cheaper. Make sure you're using the correct rate for each charging session. 4. **Business use percentage** - Only deduct the portion that's actually business use. I keep a simple mileage log showing business vs personal trips to support my percentage. The IRS treats this the same as any other vehicle operating expense, so as long as you have good documentation, you're in solid territory. I've been claiming about $180/month in charging costs with no issues.

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