TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

$7500 Tax Credit Taken Back

Discussion in 'Energy, Environment, and Policy' started by Brightonuk, Mar 28, 2014.

  1. Brightonuk

    Brightonuk Member

    Joined:
    Mar 16, 2014
    Messages:
    377
    Location:
    Plantation
    I have a 2011 Nissan Leaf that was a 3 yr lease beginning 12/15/2011.
    Nissan have agreed to take car back under the Florida Lemon law (I complained about the abysmal mileage every month to the dealer) I was told they would refund all the money I had spent on the car thus far, which made me very happy as would mean an extra $23K down payment on my model S.:love:

    I received the Acceptance of Vehicle Repurchase offer which deducted 32477 miles in usage ($10,373.00) in addition they are deducting the $7500 tax incentive that was taken off the price of the car in the original lease.

    My question is am I entitled to that $7500 as I have had the car for 27 months. and if so should I contest the $7500 deduction Nissan is taking or try to claim it from my 2014 tax bill (I will also have the $7500 tax credit for the Tesla in 2014)
    In addition they are charging me $0.31 a mile where as the overage stated in the lease is $0.15 a mile over 45k miles.

    Thanks for any advice
     
  2. yobigd20

    yobigd20 Well-Known Member

    Joined:
    Oct 28, 2012
    Messages:
    5,793
    Location:
    Skaneateles, NY

    per form 8936-

    "If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit;"


    sorry, but you are not and never were entitled to the credit.

    what I would contest though is that mileage deduction fee ($10k). If they have originally told you that you would get 100% of your money back, but now are deducting this $10k, then they are breaking their word to you and I would argue this with a lawyer. (I had a similar situation with a different car company and as soon as I brought a lawyer into the situation they agreed to pay me back 100% and drop the "usage fee").
     
  3. Brightonuk

    Brightonuk Member

    Joined:
    Mar 16, 2014
    Messages:
    377
    Location:
    Plantation
    Thank You :crying:

    I need to read the Florida Lemon Law as that is reason they are taking it back.
    I am sure there is a mileage or use clause somewhere in the document, in addition I have 40k on the clock so they at least came up 7.5K miles short.

    One point that is confusing is the reason they state in their letter they are taking the car back is "Based on the concerns with the rear brake control module and park brake actuator" for me this was never a concern.
    It was taken in for that once when I got a warning on the dash to take the car to the dealer but I assume it was fixed and never crossed my mind again.

    My complaint was solely the ridiculous range I was getting (57 miles real world driving)
     
  4. joefee

    joefee Over 2 Million TMC page views

    Joined:
    May 29, 2011
    Messages:
    909
    Location:
    CA
    I was just at a Nissan dealer and saw a Leaf that was taken back as a "lemon" ... a trend????
     
  5. Brightonuk

    Brightonuk Member

    Joined:
    Mar 16, 2014
    Messages:
    377
    Location:
    Plantation
    #5 Brightonuk, Mar 28, 2014
    Last edited: Mar 28, 2014
    FU OPEC.jpg I was one of the first to take delivery of the Nissan Leaf in the SE and I don't have any regrets with the car, Nissan changed my whole driving experience from ICE to EV.

    And as a bonus they; reduced our reliance on oil, made the EV nearly affordable, hopefully pissed of Big Oil. and convinced the misses we need a Tesla.

    Gonna miss my Leaf.............. right up to the point I close the door for the first time on my new Tesla.
     
  6. Electric700

    Electric700 Member

    Joined:
    May 21, 2013
    Messages:
    984
    Location:
    Florida, United States
    Sorry about your Nissan LEAF problems. I'm seeing more and more LEAF battery degradation cases, primarily because the car doesn't have an active thermal management (TMS) system like the Tesla Model S has, and now it appears they've made the 2014 LEAF even worse since you can only charge to 100% and not also 80% (to help lengthen battery life).

    I'm wondering when Nissan will acknowledge that they really should put a TMS in the car, and go back to variable charging levels.
     
  7. wycolo

    wycolo Active Member

    Joined:
    May 16, 2012
    Messages:
    2,422
    Location:
    WY
    > My complaint was solely the ridiculous range I was getting (57 miles real world driving)
    > am I entitled to that $7500
    [Brightonuk]

    'Ridiculous' as in 'really, really good'??

    The $7500- is the max deduction a *purchaser* can deduct assuming there is at least $7500- tax due.

    The intent here would appear to be gaming the system, big time.
    --
     
  8. cgiGuy

    cgiGuy Member

    Joined:
    Jul 9, 2013
    Messages:
    975
    Location:
    Sacramento, CA
    The $7500 was claimed by the financial institution who contracted the lease. So, they already received that money. They decided to pass it along to you in the price of the car. No way I'd pay that back..

    -----

    Love the plate, by the way. I'm surprised they approved it.
     
  9. Rockster

    Rockster Active Member

    Joined:
    Oct 22, 2013
    Messages:
    1,005
    Location:
    McKinney, TX
    "FU OPEC" was my first choice for our TX plate, but my wife vetoed it as too inflammatory. Not sure if it would have been approved in TX or not.
     
  10. yobigd20

    yobigd20 Well-Known Member

    Joined:
    Oct 28, 2012
    Messages:
    5,793
    Location:
    Skaneateles, NY
    unfortunately cars returned as lemons in one state are just shipped off to another state and re-sold without the "lemon" title. so someone else is bound to get your lemon...
     
  11. FlasherZ

    FlasherZ Sig Model S + Sig Model X + Model 3 Resv

    Joined:
    Jun 21, 2012
    Messages:
    7,019
    The IRS will disallow if you attempt to take the $7,500 on your 2014 taxes, for two reasons -- first, you can only take the tax deduction for the year you obtained the vehicle (meaning you'd have to amend your 2011 taxes if you had purchased it then), but more importantly, you leased and as a result you aren't entitled to take it anyway. It's likely that the lessor has already filed for the credit and the IRS would immediately reject it.
     
  12. Lloyd

    Lloyd Active Member

    Joined:
    Jan 12, 2011
    Messages:
    4,883
    Location:
    San Luis Obispo, CA
    I would have a discussion with the lease company. They received the benefit for the 7500 credit in 2011. They should not recieve it again when you turn the car back in if I understand your post correctly. Ask them where they came up with .31 per mile and see if it matches your contract. Most leases have penalties for early termination, but since you were invoking the lemon law that should not apply. I think you do have some proper justification for having your lease termination modified.
     
  13. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

    Joined:
    Jul 12, 2012
    Messages:
    4,493
    Location:
    Maine
    #13 ItsNotAboutTheMoney, Mar 28, 2014
    Last edited: Mar 28, 2014
    The $7.5k would have been deducted from the cost of the vehicle when the lease was calculated so they're just applying it again for the calculation of current value.

    So, they're presumably doing: price - $7.5k (tax credit) - value_of_miles = current value.

    Well, you didn't do over 45k miles. You have a 45kmi lease. 45kmi * $.31/mi = $13.95k. $13.95k/36mo = $387.50/mo. Was your payment about $387.50 per month? That would be a basis for valuing the miles driven in your lease at $0.31/mi.
     
  14. Brightonuk

    Brightonuk Member

    Joined:
    Mar 16, 2014
    Messages:
    377
    Location:
    Plantation
    #14 Brightonuk, Mar 28, 2014
    Last edited: Mar 28, 2014
    How to get around the "I'm Offended by anything after 1987" crowd

    http://fuopecinteriordesigns.yolasite.com/our-style.php

    Wow 1987 seems so long ago :crying:

    - - - Updated - - -

    - - - Updated - - -

    Ya I was just wishing $7500 towards the Tesla would have been nice, along with another $7500 tax credit and the original $22,800 paid into the Leaf...... Man Ill get a P85
     
  15. Brightonuk

    Brightonuk Member

    Joined:
    Mar 16, 2014
    Messages:
    377
    Location:
    Plantation
    Now I actually have 40035 miles they took a long time getting this sorted, and as Nissan tracks the car via Carwings and I always connect when I drive the car they know the mileage and driving habits.
    I guess all things considered I should be grateful that:

    1 They agreed to take the car back regardless of the reason
    2 I get $5k towards the price of the Tesla
    3 They took it back before I hit 45K miles (I average 1485 miles a month)
    4 I get my dream car
    5 The wife is actually in agreement for once

    My monthly lease was $494 (I only put down $1800)
     
  16. Citizen-T

    Citizen-T Active Member

    Joined:
    Aug 25, 2011
    Messages:
    2,442
    Location:
    Raleigh, NC
    FYI, I literally just leased a Volt yesterday. The leasing company applied the tax credit to the residual expected at the end of the lease, not to the selling price of the car. They took the expected residual and added $7.5k when doing the monthly payment calculation. I don't know if everyone applies the credit this way or not, but that's how Ally did it.
     
  17. NoMoGas

    NoMoGas Member

    Joined:
    Jul 22, 2013
    Messages:
    577
    Location:
    Los Angeles, California, United States
    That's strange. I leased the volt in 2013 and got the credit. It's apparently how it's worded I'm not sure, either way it goes back to somebody, IRS ultimately.
     
  18. rtz

    rtz Member

    Joined:
    Nov 26, 2013
    Messages:
    142
    Location:
    United States
    I think the 2014 Leaf is going to have the new "hot weather" battery as standard? I'd like to see Nissan do either a mid year model refresh; or an early 2015 release and step up to 150-200+ mile range. Modding the floor pan for a different shape battery shouldn't be out of the question; or add another battery module.
     
  19. wycolo

    wycolo Active Member

    Joined:
    May 16, 2012
    Messages:
    2,422
    Location:
    WY
    >> My complaint was solely the ridiculous range I was getting (57 miles real world driving) [Brightonuk]

    > 'Ridiculous' as in 'really, really good'??

    Ooops, you meant '57 miles actual BEV in a LEAF' whereas I read this as '57 miles petrol equivalent in a Prius' which would be good/normal. So my bad!! You definitely are getting nowhere near the nominal '100 mile expected range' that the LEAF had when new.
    --
     

Share This Page