I want to go from my P100D to a plaid(new or used) but should I wait for 2024?

[Jayskywalker21]

Many people will misinterpret “You need to have at least a $7,500 tax liability to realize the incentive” as meaning that you have at least a $7.500 balance due to the IRS at the endo of the year after whatever withholding and/or prepayments you’ve made for the year. That is not correct.

You simply must have federal income tax of $7,500 or more for the year, whether you’ve already paid it or not, to qualify for the tax credit.

If at the end of the year you owe a balance of less than $7,500, the difference can either be refunded to you or applied to your 2024 taxes.

Ok so I just need to make sure I'm reading this correct. For example lets say you make 100k. You would owe 27k(Tax Liability) to the IRS at the end of the year if taxes at a 27% rate. So since you owe 27k to the irs for the year you would be eligible for the $7500 credit because you had at least a 7500 tax liability which was the 27k? Lol I just want to make sure this is right

 

[Ostrichsak]

Many people will misinterpret “You need to have at least a $7,500 tax liability to realize the incentive” as meaning that you have at least a $7.500 balance due to the IRS at the endo of the year after whatever withholding and/or prepayments you’ve made for the year. That is not correct.

You simply must have federal income tax of $7,500 or more for the year, whether you’ve already paid it or not, to qualify for the tax credit.

If at the end of the year you owe a balance of less than $7,500, the difference can either be refunded to you or applied to your 2024 taxes.

Point of clarification; I never said you had to have a $7,500 refund due to receive the incentive.

 

[stevej119]

Ok so I just need to make sure I'm reading this correct. For example lets say you make 100k. You would owe 27k(Tax Liability) to the IRS at the end of the year if taxes at a 27% rate. So since you owe 27k to the irs for the year you would be eligible for the $7500 credit because you had at least a 7500 tax liability which was the 27k? Lol I just want to make sure this is right

Correct. Even if you already paid the $27k through withholding or quarterly estimated tax payments, you still get the $7500 credit either refunded to you or applied to your 2024 taxes.

 

[stevej119]

Point of clarification; I never said you had to have a $7,500 refund due to receive the incentive.

I wasn’t suggesting that you did, and I knew what you meant. I was simply pointing out a misinterpretation of what you wrote that some people were likely to make.

This has been going on for years. So many people misunderstand and think that if they don’t owe an unpaid balance to the IRS of $7,500, they lose out on the tax credit.

 

[Ostrichsak]

Ok so I just need to make sure I'm reading this correct. For example lets say you make 100k. You would owe 27k(Tax Liability) to the IRS at the end of the year if taxes at a 27% rate. So since you owe 27k to the irs for the year you would be eligible for the $7500 credit because you had at least a 7500 tax liability which was the 27k? Lol I just want to make sure this is right

Correct. The federal tax credit has nothing to do with your refund other than the amount it will be after the dust settles.

 

[Jayskywalker21]

Correct. The federal tax credit has nothing to do with your refund other than the amount it will be after the dust settles.

Got it, I'm almost like at the point of just biting the bullet and getting the LR x with no options the tax credit is huge.

 

[Ostrichsak]

I wasn’t suggesting that you did, and I knew what you meant. I was simply pointing out a misinterpretation of what you wrote that some people were likely to make.

This has been going on for years. So many people misunderstand and think that if they don’t owe an unpaid balance to the IRS of $7,500, they lose out on the tax credit.

I didn't take it that way but I know there's a lot of confusion surrounding this topic so I wanted to make it abundantly clear that nobody was stating such a thing in this thread & we were all in agreement.

 

[Ostrichsak]

Got it, I'm almost like at the point of just biting the bullet and getting the LR x with no options the tax credit is huge.

It'll probably be worth it to see what an EoY push looks like. Having owned black interior Teslas (it was the only color I would consider initially) previously I'm only interested if I can get that white interior included to not exceed the $80k cap.

 

[Jayskywalker21]

It'll probably be worth it to see what an EoY push looks like. Having owned black interior Teslas (it was the only color I would consider initially) previously I'm only interested if I can get that white interior included to not exceed the $80k cap.

Hmm I could wait absolutely, but lets say I wait until Dec 31st and Make an order. I could still take advantage for 2023 Taxes when I file early next year right? Also I would like to thank you for being on the forums this much and being this helpful along with @stevej119

 

[stevej119]

Hmm I could wait absolutely, but lets say I wait until Dec 31st and Make an order. I could still take advantage for 2023 Taxes when I file early next year right? Also I would like to thank you for being on the forums this much and being this helpful along with @stevej119

I’m also not a tax expert, but I’m pretty sure (99.9%) you cannot take a credit in 2023 for a car delivered in 2024.

 

[stevej119]

I took delivery of my Ultra Red S LR a week ago today and absolutely love it. I wasn’t planning on getting a new car this year, but Tesla made me an offer I could not refuse with the FUSC transfer from my 2015 85D with over 240k miles. Now I can continue to carry my muddy mountain bike in the older car and keep the new one clean on the inside.

I also have to say that I was not expecting to be impressed by FSD, but it’s performance has blown me away, especially on the freeway. I guess the bar was set pretty low for the city driving, based on everything I’ve read here, so performing as well as hit does there was a bonus. I had no intention of purchasing either EAP or FSD, but at the end of the trial I might be choosing one of those options.

This was my fourth Tesla purchase and all have worked out very well so far.

 

[Ostrichsak]

Hmm I could wait absolutely, but lets say I wait until Dec 31st and Make an order. I could still take advantage for 2023 Taxes when I file early next year right? Also I would like to thank you for being on the forums this much and being this helpful along with @stevej119

You would have to take delivery by 12/31/23 to use the tax credit for 2023. Luckily, there is the same $7,500 available in 2024 so that shouldn't be a buying motivation as it's not going away or anything like that.

 

[stevej119]

You would have to take delivery by 12/31/23 to use the tax credit for 2023. Luckily, there is the same $7,500 available in 2024 so that shouldn't be a buying motivation as it's not going away or anything like that.

Keeping in mind, of course, that the only way to get a credit on a models S is through the section 179 deduction as a business owner. Individuals are only allowed the Federal deduction on sedan EV’s up to $55k. Up to $80k on X and Y.

 

[Jpandes]

The used Plaid prices are so tempting! But that also means that the prices that we can sell our P100D's for will also be lower. I would like to wait until used Plaid's w/ "track mode" enabled hit the market.

 

[Jayskywalker21]

The used Plaid prices are so tempting! But that also means that the prices that we can sell our P100D's for will also be lower. I would like to wait until used Plaid's w/ "track mode" enabled hit the market.

Yeah they are I'm looking at a few used plaid X's around 85-88k and the S plaids are JUST under 70k see a few 66-67k.

Buying new for the X plaid you're looking at 96-97k+ and the S about 85k+ after you choose your options


I'd love to sell my P100D but as it stands it's probably worth 35-40k MAX on the open market and that's me getting lucky lol