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$7000 Tax Credit in 2021 - retroactive?
- Thread starter bigfntuna
- Start date
If the credit has the word tax in it
And takes effect for this year it will apply to the whole year.
From a practical standpoint having a credit start mid year is functionally illegal
I’m not saying they can’t start on an arbitrary day but a consumer break written that way is open to lawsuits and confusion.
we shall see
And takes effect for this year it will apply to the whole year.
From a practical standpoint having a credit start mid year is functionally illegal
I’m not saying they can’t start on an arbitrary day but a consumer break written that way is open to lawsuits and confusion.
we shall see
Spidey616
Member
And they will require you to submit the VIN on your return. With the vin they can derive build date.
You could take ownership of a "new" car that was built in 2020 and sat on the lot for 6+ months.
You could also just lie, and say you took ownership after May 24th. You just have to cross your fingers and hope you're not audited.
Order date means nothing to gov’t. Only when you accept delivery / bought the car. Don’t esign the Tesla loan earlier than day of delivery. And don’t make final payment until at the SC and you accept the car. They will initiate an ACH based on a personal check.
Mrbrock
Active Member
With a VIN they can figure the original vehicle purchase date. They don’t care about build just the date it was first sold as new.
Now the dilemma is when to purchase (or release hold). Do you gamble on this bill passing this year and buy now or do you wait til it actually passes then buy, or do you wait til 2022 for the American made bonus to kick in? As someone with an order on hold and a Model 3 with absurdly high resale value right now it is a tough dilemma. Will waiting til 2022 cause me to lose $2500 in trade in value on my Model 3? I will likely put another 8k-10k miles on it by then. But by that point the bill should have passed or not, there shouldn’t be an limbo. Tough choices ahead.
Now the dilemma is when to purchase (or release hold). Do you gamble on this bill passing this year and buy now or do you wait til it actually passes then buy, or do you wait til 2022 for the American made bonus to kick in? As someone with an order on hold and a Model 3 with absurdly high resale value right now it is a tough dilemma. Will waiting til 2022 cause me to lose $2500 in trade in value on my Model 3? I will likely put another 8k-10k miles on it by then. But by that point the bill should have passed or not, there shouldn’t be an limbo. Tough choices ahead.
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Platini
Model Y LR White 2021
Mrbrock
Active Member
Also, the credit becomes fully refundable from 2022 on. If you have low tax liability it would make it in your best interest to wait.
Biden is killing me with the wait! I philosophically cannot bring myself to buy the Model YP that I want until we get some real clarity on the tax credit issue. It's July - weren't we supposed to have clarity one way or another by now!? Arg.
Yea I know some of you are like "buy the car you want that makes you happy - who cares about gov incentives blah blah blah." But I know there's got to be others out there like me that have a visceral aversion to leaving free money on the table and are impatiently holding out like me.
EDIT: To avoid red herrings in comments - I can totally afford it as is - trust me
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Yea I know some of you are like "buy the car you want that makes you happy - who cares about gov incentives blah blah blah." But I know there's got to be others out there like me that have a visceral aversion to leaving free money on the table and are impatiently holding out like me.
EDIT: To avoid red herrings in comments - I can totally afford it as is - trust me
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It’s not “free” money. And if you can’t afford a Tesla that isn’t subsidized you probably shouldn’t be buying one.
Also, rest assured Tesla will raise the prices of its vehicles to account for the tax credit if it ever comes back. Just like they lowered prices when the original credit was phased out.
And this may burst your bubble, but a first-term democratic president isn’t going to stick his neck out to advocate for this. Maybe if he gets re-elected you will see some movement from him and the senate on a tax incentive.
This type of comment always confuses me. Yes, tax incentives are paid for by everyone in one way or another but I've never heard of a rich guy not taking tax credits because he was worried that these weren't truly "free" money.
Also, I didn't see anything about his ability/inability to afford the car. I regularly wait for Black Friday, etc. to buy things I can afford because I'd rather get it discounted than pay full price. @rorystewart is just waiting to see when/if the sale everyone is talking about is going to happen or not, which is totally fine. I think people who buy things without doing due diligence on if they can get a discount are shortchanging themselves.
I gave up on seeing legislation and ordered back in May. I've been driving my MYLR for a couple weeks now with no regrets. The fossil fuel industry is still very powerful and will probably squash any rebates. Their lobbyists will inevitably be deeply involved in writing the draft legislation.
TwelveVoltMan
He'll make sparks fly round your head
I did the same, except a MYP. But I will happily take $7,500 off my tax liability if it comes back this year.
Flybuddy
Member
One downside to waiting for government action (inaction)...The price has gone up 3K or nearly half the possible incentive.
And this is why the other 99% of the population detests “rich guys”.
A Tesla is a luxury product. No two ways about it. Just because one does take advantage of the tax credit doesn’t make it morally or ethically okay.
I’m all for subsidies to promote electric vehicle adoption, but $80K vehicles with no income restrictions is a hand out for rich people.
I 100% think that the tax code is unfair and allows for way too much manipulation by folks but do you avoid taking tax credits available to you that you don't morally agree with? I just don't know what your point is for us normies who take what credits are dulled out to us while rich people can restructure/hide/move their money in ways to avoid paying proportional taxes, if any.
If there were tons of EV alternatives at ~$25k that have the same real life usability (range and charging network) for families, especially single car households, like mine, I would be more inclined to agree with your "luxury product" claim. When cross shopping the Model 3 vs. Civic, the 5yr cost of ownership are pretty much the same with the cost savings increasing over time which makes it actually a prudent financial decision (Shocker: Tesla Model 3 vs. Honda Civic — 15 Cost Comparisons Over 5 Years). The subsidies are helping people shoulder the upfront cost difference.
