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California $2,500 tax rebate details

Discussion in 'Energy, Environment, and Policy' started by atr2016, Jul 29, 2016.

  1. atr2016

    atr2016 Member

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    I understand CA has a rebate of $2,500 that can be used towards purchase of any new Tesla.

    Does anybody know the following details:
    - Do the capital gains from the sale of someone's home in another state count towards the $500K (joint) income limit?
    - Do you still get the full rebate even if you become a CA resident in the middle of the year?
     
  2. Sharkbait

    Sharkbait Member

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    I believe the rebate comes well after the purchase of the car, like the tax year after you purchase the car when you file your taxes.
     
  3. Frankman60

    Frankman60 Member

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    In case you didn't know, the CA EV rebate is currently not funded, meaning that there are no funds to pay people their rebates since June 2016. After the Tesla purchase, you can get on a wait list and possibly be paid the $2500 rebate in the future if it is funded. The rebate is a check for $2500 and if funded, would normally be paid within a month. Regarding the income tax limit of $250K individual or $500K joint, I'm not sure about the capital gain on the sale of property, but if I had to guess that would be included in deterimining the amount of income.
     
  4. cpa

    cpa Member

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    Here is my best guess--I do not know how the new rules will be implemented.

    I would suspect that the agency that will be mailing out the checks will have an income tax return requirement as part of the application process. Whether you have to attach a copy of your return or whether you give consent for the agency to retrieve a copy from the IRS or FTB is unknown. It is easy to dummy up a fraudulent return for this purpose, so I would expect that you would sign a form authorizing a limited disclosure from the IRS or FTB.

    Neither have I read the rules on what constitutes income for the purposes of eligibility for the rebate. Generally, gross receipts from a capital transaction are not included--only the gain or loss. The sale of one's personal residence is a capital transaction. By Internal Revenue Code section 121, the 250/500K is an exclusion from income and does not have to be reported unless the escrow company completed a form 1099S.

    If by chance your gain exceeds the exclusionary amounts, then the transaction must be reported on your income tax return. However, only the gain in excess of the statutory exclusion will be included on your tax form.

    I fail to understand why a home sale in another state would or would not affect your eligibility for the rebate. Income is income regardless of where it was generated. Many taxpayers have income sourced to other states and countries. I would presume that the rebate is predicated on the state of your residence when you take title to the car. You might have additional hurdles to surmount if you moved into California during the year before you purchased your car. You need to be able to prove that you are a bona fide resident of California.
     
  5. NikeWings

    NikeWings Member

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    The program has the right to test income anytime, and if you are selected then a IRS Form 4506-T, Request for Transcript of Tax Return will be requested. The test is performed against gross annual income (1040 line 22), regardless of source. Its a CA taxpayer funded program so you need to have a CA drivers license and CA address listed on your purchase agreement & registration forms which are submitted with your application. When you moved is never at issue; just that you are a verifiable CA resident paying sales tax on the car to the state.. However, as @Frankman60 mentioned, the program is currently maxed out and a waiting list has been formed in the event the program is funded again. Details here: Clean Vehicle Rebate Project
     
    • Like x 1
  6. Sharkbait

    Sharkbait Member

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    California $2,500 rebate is back as of 9/14/16. Picked up my S75 this afternoon and filed immediately. So with Tesla discounts this month, referral discount, federal tax credit, and state rebate, I'm looking at $18,000. Not bad and makes the S75 that much sweeter. I'm happy.
     
    • Like x 1
  7. Sharkbait

    Sharkbait Member

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    So according to the California Clean Vehicle Rebate Program (CVRP), the $2,500 rebate is sent out 90 days after all the appropriate documents have been received. Income level verification aside, I note that all or part of the rebate must be returned if the vehicle is not held for 30 months. I wonder what would happen if one sold or traded his/her Tesla before the 30 months was up and bought another new Tesla? Would you return a portion of your rebate and then be able to file for a new rebate subject to the program still being around and funding being available?
     
  8. miimura

    miimura Active Member

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    Yes, that is my understanding of how the rebate works. You have to settle up your previous rebate before they will give you another. Also, you're now limited to two per entity, lifetime, for purchase/lease after January 1, 2015. Transactions prior to that date don't count toward the lifetime limit. So, a married couple could potentially get 4 rebates as long as the vehicles were only titled to one person each. Some people like to title as "Jack Doe OR Jane Doe" so either person can sign for transfer. I don't know specifically how strict they are on this point. As a precautionary measure we leased my wife's e-Golf in only her name in April 2015.
     
  9. Sharkbait

    Sharkbait Member

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    Let's see. I'm now 69, so I don't believe I'll need more than one, maybe two rebates. Nobody is going to want me driving around at 90. Imagine the headlines; "Ninety year old gizzer is captured after outrunning police in P200DL."
     
  10. outie

    outie Member

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    It will be level 4 autonomous by then...
     
  11. Sharkbait

    Sharkbait Member

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    Does that mean I can "take it to the grave"?
     

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