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Discussion : All discussion regarding Model 3 and Tax credit in model 3 subforum
- Thread starter mapman
- Start date
Per prior discussions here:
One needs to earn at least $67,850 (tax liability plus standard deduction) to capture the full $7,500 fed tax credit in 2023.
Pennsylvania provides a $2k state tax rebate to those earning no more than $54,360.
Does anyone know the amount of the $7,500 federal tax credit that would be captured to anyone earning $54,360?
I’m trying to figure out for my daughter whether she would secure close to $5,500 of the federal credit and still qualify for the $2k state rebate if she earns $54,360 in 2023.
Thank you.
One needs to earn at least $67,850 (tax liability plus standard deduction) to capture the full $7,500 fed tax credit in 2023.
Pennsylvania provides a $2k state tax rebate to those earning no more than $54,360.
Does anyone know the amount of the $7,500 federal tax credit that would be captured to anyone earning $54,360?
I’m trying to figure out for my daughter whether she would secure close to $5,500 of the federal credit and still qualify for the $2k state rebate if she earns $54,360 in 2023.
Thank you.
There are a bunch of tax calculators out there.
This one predicts a tax liability of $4,641, assuming single, no dependents, and no 401k nor IRA contributions.
Federal Income Tax Calculator 2023-2024 - NerdWallet
I posted this previously in another location.
should have been posted here:
I understand M3 may not fully qualify for federal tax credit in 2024 due to battery mineral sourcing requirements that will be phased in on 1/1/24.
I’d like to wait until 2024 to capture $7,500 tax credit at point of sale but don’t want to lose the credit in 2024 due to mineral sourcing requirement.
Any word as to whether Highlands sold in US will remedy that mineral sourcing limitation?
If not do both lithium (AWD) and LFP (RWD) batteries use minerals sourced outside USA?
should have been posted here:
I understand M3 may not fully qualify for federal tax credit in 2024 due to battery mineral sourcing requirements that will be phased in on 1/1/24.
I’d like to wait until 2024 to capture $7,500 tax credit at point of sale but don’t want to lose the credit in 2024 due to mineral sourcing requirement.
Any word as to whether Highlands sold in US will remedy that mineral sourcing limitation?
If not do both lithium (AWD) and LFP (RWD) batteries use minerals sourced outside USA?
Who even knows when Highland Model 3s will come to the US. But there is no change in the battery, so it wouldn't help this.
Yes. Though the percentage, and from which country the minerals come from would differ between the two.
When buying a Tesla at a regular dealer, what constitutes price? Are the dealer add-ons part of the "price?" I imagine extended warranties, financing fees and TTL are not part of the price, but sometimes dealers add things like special coatings, window tinting, nitrogen tire inflation, stupid stuff like that, which are much more physical things. Is that stuff part of the price of the price? If that extra physical stuff pushes your purchase over $25,000 will it disqualify you from getting the $4,000 tax credit?
Q2. Is there a price limitation on a previously-owned clean vehicles eligible for the credit? (updated October 6 , 2023)
A2. If the sales price exceeds the $25,000 limitation for previously-owned clean vehicle, the vehicle is not eligible for the previously-owned clean vehicle credit. The sale price of a previously-owned clean vehicle means the total sale price agreed upon by the buyer and seller in a written contract at the time of sale, including any delivery charges and after the application of any incentives, but excluding separately-stated taxes and fees required by State or local law. The sale price of a previously- owned clean vehicle is determined before the application of any trade-in value. The sale price does not include separate financing, extended warranties, or insurance.
https://www.irs.gov/pub/taxpros/fs-2023-22.pdf
Marcust99
Member
Scenario:
1. Parents make above the gross adjusted income threshold to qualify for the $7500 credit..
2. Parents have 18 year old son in college.
3. Could son purchase the car in his name (for the family) and claim the $7500 credit?
1. Parents make above the gross adjusted income threshold to qualify for the $7500 credit..
2. Parents have 18 year old son in college.
3. Could son purchase the car in his name (for the family) and claim the $7500 credit?
If doing it this year, does the son have $7,500 of tax liability to offset in the 2023 tax year? If doing it next year, and getting it as a point-of-sale credit, likely yes.
Marcust99
Member
Yes does that that much liability. However, one of the parents was reading and if you claim a child under 26 as a "qualifying dependent", then
said child cannot claim the rebate. Maybe.
As of the last Treasury update (and my reading of the law) the point of sale credit is not dependent on the purchaser's tax liability. Effectively refundable, but it's not actually linked to taxes, so view it as extra down payment.
To be honest I haven't seem it but I would doubt that would allow that. Same goes for income limit etc.
Let me start off by saying we loved our Tesla but decided to sell based practicality. It's a little too small for our family, otherwise we would keep it. Model Y is out of the question for the time being. With that said, I bought the car in March of 2023 and will be trading it in on a SUV. I've read through the IRS website but have not seen anything related to length of ownership in relation to receiving the 7500 tax credit. Im a little worried that there will be an issue if I trade the car in before receiving the tax credit in 2024. Anyone have any input on this?
Birdsfan
Member
ATPMSD
Active Member
There is no holding requirement, but it is always best to get assurance from your tax professional. Here is a link to the IRS requirements
www.irs.gov
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.
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