Filing Taxes Jointly & Tax Credit

[PhysicsGuy85]

Forgive me if I missed this info somewhere, but I read through A LOT of threads on the tax credit hoping to find some info on this, and I only saw it posed as a question, and never answered.

Scenario: I myself have a reservation for the M3. Regardless of where the tax credit is in the phase-out when I take delivery, IF my estimated tax liability is going to be less than the current amount of the tax credit, can my wife and I file jointly to increase our combined liability to realize more/all of the available credit?

Again, I dug deep and did not find an answer on this.

 

[patrick40363]

yes

 

[number12]

Better question is... if you don't owe $7500 in taxes should you be buying a $40-60k car at all?

Have you considering leasing a '17 leaf?

 

[PhysicsGuy85]

Better question is... if you don't owe $7500 in taxes should you be buying a $40-60k car at all?

Have you considering leasing a '17 leaf?

Have you considered that some people's financial situation is a bit more complex than their tax liability would suggest? But thank you for your concern...

 

[PhysicsGuy85]

yes

Thank you. Are you a tax pro or you just happen to know this will work?

 

[DR61]

I am not a tax professional, but my understanding is that married couples have the option of filing jointly. So why would it not work for you? We always have.
Should You and Your Spouse File Taxes Jointly or Separately? - TurboTax Tax Tips & Videos

 

[JCLeonard]

My wife and I file jointly and used the full credit for Leaf last year. If you have not filed jointly in the past, changing to jointly now may introduce OTHER important tax considerations. Definitely worth asking a local tax pro like we did.

 

[ncmountains]

Forgive me if I missed this info somewhere, but I read through A LOT of threads on the tax credit hoping to find some info on this, and I only saw it posed as a question, and never answered.

Scenario: I myself have a reservation for the M3. Regardless of where the tax credit is in the phase-out when I take delivery, IF my estimated tax liability is going to be less than the current amount of the tax credit, can my wife and I file jointly to increase our combined liability to realize more/all of the available credit?

Again, I dug deep and did not find an answer on this.

I am a tax professional
Yes, you can file jointly to maximize the credit.
Generally speaking there are very few circumstances that make mfs a favorable filing status anyway

 

[PhysicsGuy85]

I am a tax professional
Yes, you can file jointly to maximize the credit.
Generally speaking there are very few circumstances that make mfs a favorable filing status anyway

mfs = married filing separately?

 

[Barklikeadog]

I am a tax professional
Yes, you can file jointly to maximize the credit.
Generally speaking there are very few circumstances that make mfs a favorable filing status anyway

this

 

[SageBrush]

mfs = married filing separately?

Yes.

I am not a CPA

 

[SageBrush]

Better question is... if you don't owe $7500 in taxes should you be buying a $40-60k car at all?
Have you considering leasing a '17 leaf?

A single disagree vote hardly covers your post:

The car starts at ~ $36k and has up to a $7,500 tax credit
Your presumptions about savings or current income are unsupported.
A 100 mile range LEAF in Montana ? A lease ?!

 

[number12]

A single disagree vote hardly covers your post:

The car starts at ~ $36k and has up to a $7,500 tax credit
Your presumptions about savings or current income are unsupported.
A 100 mile range LEAF in Montana ? A lease ?!

I just bought two 17 leafs as back up cars and dealer had ~$13k in incentives plus $7500 fed rebate each. I simply was suggested the lowest price EV on the market for ~$14k out the door or financed for less than $300/mo + fed tax credit.

A T3 in 2017 or early 2018 will cost north of $50k... factor in initial depreciation... seems like to expensive of a car. No matter the "complex situation"

 

[ItsNotAboutTheMoney]

Better question is... if you don't owe $7500 in taxes should you be buying a $40-60k car at all?

Have you considering leasing a '17 leaf?

A few questions:
How much does a single person have to earn to have a Federal Income Tax tax liability of $7,500?
Given current Medicare and Social Security taxes, what would be the person's net monthly income?
How much disposable monthly income would the single person have?

 

[number12]

A few questions:
How much does a single person have to earn to have a Federal Income Tax tax liability of $7,500?
Given current Medicare and Social Security taxes, what would be the person's net monthly income?
How much disposable monthly income would the single person have?

@ItsNotAboutTheMoney it's not about the money...

If you can not qualify for credit... buy used. It's priced in.

Used S vs new 3. Seems like no brainer. Hopefully the 8+ disagrees will have better advice.

 

[number12]

Or lease so again it's "priced" in.. although Tesla lease programs are terrible in some states

 

[patrick40363]

Thank you. Are you a tax pro or you just happen to know this will work?

I have done it. I use a CPA for my taxes.

 

[SageBrush]

A T3 in 2017 or early 2018 will cost north of $50k

Only if you want it to.

I know LEAFs are cheap ... and inexpensive. I bought one.
They also are quite unlikely to be the only car for a person in Montana so your suggestion probably amounted to a monthly payment of $200+ a month for the Bozeman driving and another monthly payment for the non-local car. That is no way to save money. The person who has low tax liability, low income, and low assets buys ONE car for the household if possible or a dirt cheap crap ICE'er for the local driving duties.

 

[Barklikeadog]

A few questions:
How much does a single person have to earn to have a Federal Income Tax tax liability of $7,500?
Given current Medicare and Social Security taxes, what would be the person's net monthly income?
How much disposable monthly income would the single person have?

The best answer to almost any tax question: It depends.

If a single person made 36,000 in schedule C income and had literally nothing else going on, he would have a $7500 liability.

 

[T34ME]

Better question is... if you don't owe $7500 in taxes should you be buying a $40-60k car at all?

Have you considering leasing a '17 leaf?

Tax liability has nothing to do with net worth or a creative tax avoidance strategy. There is one purported Billionaire who said recently that he is "smart" because he pays no taxes.