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bkp_duke
Well-Known Member
It would affect any delivery after Dec. 31st 2017. So if you took delivery of your car, you can claim the credit for 2017 taxes.
bkp_duke
Well-Known Member
Thanks for the info. Sessions should review Econ 101 and keep his paws out of crap like that. Competition is a @#$%.
Dr. J
Active Member
Not a deal breaker for this Congress. But your tax credit is solid (under the current language of the bill).
hacer
Active Member
Since it is a regular practice of the GOP right-wing to exclude payroll taxes (FICA, etc) from consideration of "who pays most of the federal taxes or has the highest marginal or effective rates" e.g. The Facts About Who Pays the Most in Taxes in America among many, many others including current GOP talking points on their tax bill, is it not perfectly fair to exclude the federal spending funded by these "not-federal-taxes" too?
Since you want to include the social spending then including the social taxes totally demolishes the GOP talking points of millions of households paying no federal taxes and greatly amplifies the lopsidedness of the house bill's tax cuts for the super-wealthy compared to the poor and middle class (which they work really hard to compare, even only considering "income" taxes.
Also we'd see who really has the highest tax rates.
cpa
Active Member
Here is the best summary of most of the salient proposals that are currently written into the bill:
Details of tax reform legislation revealed
It is likely that most of these changes that would affect most of you have been discussed above.
Worthy of noting, however are the following:
Elimination of the Section 43 and 45I credits (Enhanced Oil Recovery Credit and Producing Oil and Gas from Marginal Wells [strippers] Credit.)
Elimination of the deduction (50% allowable) for entertainment, amusement, or recreation expenses. The deduction for meals (50% or 80% if in the transportation industry) appears to be retained.
Capping the deduction for interest at 30% of adjusted taxable income for businesses with > $25,000,000 in gross receipts.
The 25% maximum rate for pass-through entities (S-Corps, partnerships, sole proprietors and farmers/fishers) excludes personal services businesses like law, medicine, accounting, engineering, performing arts, athletics, and consulting. How this affects the computer services industries is unclear, but I would suppose that if personal services are a majority component of gross receipts, that those highly-paid self-employed computer types would likely not benefit from this 25% rate.
Repeal the like-kind exchange rules for personalty.
Interest income from Private Activity Bonds and Bonds used to build sports stadiums or arenas would no longer be exempt from federal tax.
No more loopholes for deducting executive compensation > $1,000,000 on corporate tax returns. The deduction is capped at $1 million with no ability to deduct performance incentives, and it expands the definition of those subordinate executives who would have their compensation deduction capped.
Good news for Ohmman: The excise tax on private foundations' net investment income drops to 1.4% from 2%.
We shall see how this particular sausage making exercise winds up. Like most things tax related, the devil is in the details, and we have not seen the details. Time will tell how long it takes for the IRS to issue new regulations interpreting any new law (if it is signed into law.)
Details of tax reform legislation revealed
It is likely that most of these changes that would affect most of you have been discussed above.
Worthy of noting, however are the following:
Elimination of the Section 43 and 45I credits (Enhanced Oil Recovery Credit and Producing Oil and Gas from Marginal Wells [strippers] Credit.)
Elimination of the deduction (50% allowable) for entertainment, amusement, or recreation expenses. The deduction for meals (50% or 80% if in the transportation industry) appears to be retained.
Capping the deduction for interest at 30% of adjusted taxable income for businesses with > $25,000,000 in gross receipts.
The 25% maximum rate for pass-through entities (S-Corps, partnerships, sole proprietors and farmers/fishers) excludes personal services businesses like law, medicine, accounting, engineering, performing arts, athletics, and consulting. How this affects the computer services industries is unclear, but I would suppose that if personal services are a majority component of gross receipts, that those highly-paid self-employed computer types would likely not benefit from this 25% rate.
Repeal the like-kind exchange rules for personalty.
Interest income from Private Activity Bonds and Bonds used to build sports stadiums or arenas would no longer be exempt from federal tax.
No more loopholes for deducting executive compensation > $1,000,000 on corporate tax returns. The deduction is capped at $1 million with no ability to deduct performance incentives, and it expands the definition of those subordinate executives who would have their compensation deduction capped.
Good news for Ohmman: The excise tax on private foundations' net investment income drops to 1.4% from 2%.
We shall see how this particular sausage making exercise winds up. Like most things tax related, the devil is in the details, and we have not seen the details. Time will tell how long it takes for the IRS to issue new regulations interpreting any new law (if it is signed into law.)
Thanks for posting this, especially the link. I have no idea how it will affect me: It looks as though my taxes before AMT would be higher, but elimination of the AMT might mean my actual tax would be lower. I'll find out in April when my accountant does my taxes. (April because the damn mutual funds issue revised documents at the last minute so there's no point in doing the taxes earlier and then having to re-do them. If I could add one provision to the tax law it would be that mutual funds not be allowed to revise their declarations after January 31.)
I have seen people claiming that HSAs would be eliminated, but I see no mention of that in the article. Having an HSA saves me about $1,000 a year, so naturally I'd like it to remain, though I have no idea how this affects the citizenry overall. Of course I think that health care should be one-payer universal coverage, and free for those who cannot otherwise afford it, with reasonable co-pays for those of us who can.
I presume this is all a moving target until a bill is passed and signed.
I bought a CPO Model S so it didn't matter. There will be No more gas cars for me with or without the tax breaks.
I'm convinced that a solid compelling capable EV (that doesn't look like a clown car) will sell with or without the tax breaks.
I'm convinced that a solid compelling capable EV (that doesn't look like a clown car) will sell with or without the tax breaks.
FlatSix911
Porsche 918 Hybrid
Electric vehicle tax credit preserved in Senate’s revised tax bill, says senator
All the details from the Senate’s version of the bill are not out yet, but a senator from South Dakota says that it does preserve the tax credit for electric cars. Republican Senator John Hoeven commented on the bill according to the Financial Post: “The South Dakota Republican said the measure also preserves existing clean energy tax incentives such as for electricity production from wind. It preserves a tax credit for electric cars as well.“
It follows the news that electric vehicle buyers got an ally within GOP over repeal of the $7,500 federal tax credit when Republican Senator Dean Heller, who sits on the Senate’s finance committee, said that he will fight against the repeal.
All the details from the Senate’s version of the bill are not out yet, but a senator from South Dakota says that it does preserve the tax credit for electric cars. Republican Senator John Hoeven commented on the bill according to the Financial Post: “The South Dakota Republican said the measure also preserves existing clean energy tax incentives such as for electricity production from wind. It preserves a tax credit for electric cars as well.“
It follows the news that electric vehicle buyers got an ally within GOP over repeal of the $7,500 federal tax credit when Republican Senator Dean Heller, who sits on the Senate’s finance committee, said that he will fight against the repeal.
For the $7500 tax credit going away in 2018, an OA mentioned that you can possibly take paper delivery of vehicle in 2017 and take physical delivery in 2018. Has anyone else heard of this? I have not been able to talk to a DS. He hasn't responded to emails or calls. Is this typical?
I've seen some people mention that but legally, you need to place the car in service in 2017 by actually taking delivery in 2017. Just paying for it in 2017 doesn't meet the "placed in service" requirement.
bkp_duke
Well-Known Member
That is not what US tax code says. Tax code says the car must be delivered and placed into service. No "soft" deliveries.
cpa
Active Member
That is correct. Placed in service has been litigated countless times. The statutory and case law on this concept are well-established and clear. I do not think a Tesla employee has the skill or the credibility to undo decades of history.
And, if they try to do an end run by filing the paperwork with DMV early to get a 2017 date without delivering the vehicle, well that is the F word--five letters, rhymes with broad.
Why is GM the only US manufacturer to publicly state it will work to preserve the fed tax credit?? Hello Tesla??
Utilities Push for Electric Car Tax Credit While Ford Stays Neutral
Utilities Push for Electric Car Tax Credit While Ford Stays Neutral
Dr. J
Active Member
I don't know Tesla's (the company's) official position. But Elon Musk's stance is not what you would expect:
Elon Musk Talks Incentives, Explains Why Chevy Bolt Is CARB Credit Play
I wish they wouldn't conflate the CARB credits with the buyer incentives. They are different things.
Also, credits / incentives for manufacturers are different from incentives to consumers.
"Don't throw the baby out with the bathwater..."
Also, credits / incentives for manufacturers are different from incentives to consumers.
"Don't throw the baby out with the bathwater..."
