Filing Taxes Jointly & Tax Credit

[number12]

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.

Sell a stock and realize some tax liability to get credit? This is getting silly. There are 100 better options that OP could do. Why isn't M3 in his wife's name?

 

[PhysicsGuy85]

Sell a stock and realize some tax liability to get credit? This is getting silly. There are 100 better options that OP could do. Why isn't M3 in his wife's name?

Neither of us would hit $7500; but combined income, easily. The whole point is moot really because by the time I take delivery, it will like he at 50%, maybe even 25%.

 

[ItsNotAboutTheMoney]

@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.

An S is not a 3. A used car is not a new car.

The OP asked a specific question and you've gone off on a tangent beating your own drum, making assumptions about the OP financial circumstances, instead of just asking them.

 

[PRSIST]

Why oh why do people come onto a Tesla forum and brag or try to tell people how great their Leaf or Volt is???? Why don't they go to a Leaf or Volt forum and brag all they want. We speak TESLA here!!!!

 

[T34ME]

Sell a stock and realize some tax liability to get credit? This is getting silly. There are 100 better options that OP could do.

You don't seem to understand investing or maybe you have another agenda. For an example, a retired person may have $1M in corporate tax free bonds and consequently pays no income tax on the bond return. He could certainly afford a Model 3 but not qualify for a tax rebate. You simply don't know what each individuals personal financial situation is and therefore you cannot make blanket assumptions. A friend of mine pays much less than $7,500 per year in taxes but oh he can afford a Model 3.......in all cash! No, I am not going to tell you how that is possible.

Why isn't M3 in his wife's name?

His wife drives a BMW?

If you are happy with your Leaf, then great! I will wave to you from my Model 3 when I pass by as you are stuck at a charger, if you can find one, every 100 miles.

 

[cpa]

At least Montana is a common law state, so the PhysicsGuy does not have issues concerning reporting community property income on separate returns. The only separate returns that I have prepared have been for marrieds where one spouse did not wish to reveal all his/her income to the other spouse, so they filed separately.

Remember you can change filing status from MFS to MFJ any time within the three-year statute of limitations. You CANNOT change filing status from MFJ to MFS after the due date of the return. No backsies in this scenario.

 

[number12]

You don't seem to understand investing or maybe you have another agenda. For an example, a retired person may have $1M in corporate tax free bonds and consequently pays no income tax on the bond return. He could certainly afford a Model 3 but not qualify for a tax rebate. You simply don't know what each individuals personal financial situation is and therefore you cannot make blanket assumptions. A friend of mine pays much less than $7,500 per year in taxes but oh he can afford a Model 3.......in all cash! No, I am not going to tell you how that is possible.

His wife drives a BMW?

If you are happy with your Leaf, then great! I will wave to you from my Model 3 when I pass by as you are stuck at a charger, if you can find one, every 100 miles.

M3 was referring to model 3. Wish that was obvious but clearly not. T3 more tesla board friendly?

I have a tesla 2 leafs and a Lexus hybrid, but wave all you want. Did you read the back up part?

I'll concede this thread, but first if you don't qualify for rebate why not lease and benefit from it? You can buy at end of it if you have to own a depreciating asset.

 

[number12]

M3 was referring to model 3. Wish that was obvious but clearly not. T3 more tesla board friendly?

I have a tesla 2 leafs and a Lexus hybrid, but wave all you want. Did you read the back up part?

I'll concede this thread, but first if you don't qualify for rebate why not lease and benefit from it? You can buy at end of it if you have to own a depreciating asset.

@davedavedave disagreeing with all my posts make you feel good or is there a point in this post you actually disagree with?

 

[davedavedave]

@davedavedave disagreeing with all my posts make you feel good or is there a point in this post you actually disagree with?

No ill will intended - nothing personal - I just disagree. This thread was answered on post #2.

 

[Jersey Shore Tom]

You can buy at end of it if you have to own a depreciating asset.

The way Tesla leases have been done up to now essentially recoups the tax credit in the buyout price. OP would end up not getting any of the credit and have paid all of extra fees for leasing if he followed your advice to lease a Model 3 and then buy it.

If you like to give advice to people, I request that you do your research before posting it here. That will keep me from getting annoyed and typing long boring responses.

BTW, that's what they are called, Model 3. If you insist on something shorter, go with 3. M3 is a BMW, T3 was an Arnold movie before he became the Governator.

 

[Runt8]

The way Tesla leases have been done up to now essentially recoups the tax credit in the buyout price. OP would end up not getting any of the credit and have paid all of extra fees for leasing if he followed your advice to lease a Model 3 and then buy it.

If you like to give advice to people, I request that you do your research before posting it here. That will keep me from getting annoyed and typing long boring responses.

BTW, that's what they are called, Model 3. If you insist on something shorter, go with 3. M3 is a BMW, T3 was an Arnold movie before he became the Governator.

I agree with everything you’ve said here - however, M3 is a very common abbreviation on this forum.

 

[MiamiNole]

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

I am one of those rare circumstances apparently. Spouse student loans.

I THOUGHT I knew the answer to this question, but I'm not 100% confident. Do you need to itemize in order to claim the tax credit, or can you claim the tax credit while taking the standard deduction?

 

[Jersey Shore Tom]

I agree with everything you’ve said here - however, M3 is a very common abbreviation on this forum.

It may be common, but it is grating since it is the official designation of a car Tesla has regularly described as a benchmark.

 

[T34ME]

It may be common, but it is grating since it is the official designation of a car Tesla has regularly described as a benchmark.

Exactly, even TESLA doesn't refer to it as an M3, it is confusing. The least we can do is refer to it as the TM3 or Model 3 and I don't have a problem with T3 (see my screen name). I even like calling it the EM3! This can be interpreted on so many different levels!

 

[DR61]

I am one of those rare circumstances apparently. Spouse student loans.

I THOUGHT I knew the answer to this question, but I'm not 100% confident. Do you need to itemize in order to claim the tax credit, or can you claim the tax credit while taking the standard deduction?

The EV credit has nothing to do with deductions.

 

[SageBrush]

can you claim the tax credit while taking the standard deduction?

Yes

 

[david_42]

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...

My wife will officially be a CPA in October (been doing taxes for five years) and our tax liability is typically under a couple grand. Which is good, because our reservation puts us at Summer of 2018.