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Is there (still?) a tax credit if you install 14-50 charger in your home?
(if you fall under AMT then no; otherwise yes)
cpa
Active Member
Yes; beware the dread AMT. This credit is not allowable against AMT. The odds are quite good that if one takes the $7,500 BEV credit, that one will not be able to claim the EVSE credit in the same tax year. Of course if your taxable income is so high that your regular tax less the $7,500 is > AMT, then congratulations!
Moreover, the credit does not carryover to future years. Use it in the current year or lose it.
It is available for both personal expenditures and business expenditures, although the rules are slightly different.
Moreover, the credit does not carryover to future years. Use it in the current year or lose it.
It is available for both personal expenditures and business expenditures, although the rules are slightly different.
It’s truly stupid that they only extended it to a point of time in the past. If they are going to give a tax break, it should be to incent something. Extending it to an expired time does nothing of the sort.
And I’m still confused why people keep thinking the credit is only worth $300. It’s not limited to “30% of $1000” (which would be $300). It’s limited to “30% of total cost up or $1000, which ever is lower”. So, if your total cost was $3000, then the credit would be $900.
And I’m still confused why people keep thinking the credit is only worth $300. It’s not limited to “30% of $1000” (which would be $300). It’s limited to “30% of total cost up or $1000, which ever is lower”. So, if your total cost was $3000, then the credit would be $900.
cpa
Active Member
I am not arguing nor being disagreeable, jomo25. But you don't follow tax legislation much. This is not that unusual. Tucking the extension legislation in a totally unrelated act, is however.
And you are eminently correct in applying the arithmetic to the amount available for credit.
nutts1
Member
Good old AMT; when I bought my first Tesla I had the same experience. I got the $7500 credit for the car but AMT wiped out the credit for the wall unit. Now I just got my Model 3 and I’ll again get the $7500 for the car but the two 2nd gen wall units I installed in December will be nullified by AMT.
I'm confused. Sorry for my ignorance but I'm not a tax person. If you just got your Model 3 and you installed the wall chargers in December wouldn't that be two separate tax years? I ask because I just installed two chargers in October 2017 and I'm expecting my 3 in the next few weeks or so.
cpa
Active Member
You might be sitting pretty because of the different tax years. However, the credit for the EVSE cannot reduce your tax below your "tentative minimum tax." For example, your regular federal income tax liability is $10,800. Your AMT is $10,450. All things being equal, you pay the $10,800 regular tax and forget about AMT.
However, if you paid $2,000 for EVSE equipment and installation you receive a $600 tax credit which reduces your regular tax from $10,800 to $10,200. But you cannot reduce it below the AMT of $10,450. You get to utilize $350 of the credit. The unused credit of $250 is lost forever.
If you do have AMT on your return you get zero credit.
BrokerDon
Active Member
The AMT eliminated 100% of our charging infrastructure credit in 2015 of our Tesla High Power Wall Charger 100A 240V circuit installation done by a licensed electrician and with building permits.
YMMV... but before you spend money installing charging infrastructure, check with your accountant first to see if the AMT will exclude your charging infrastructure credit qualification. Forewarned is Forearmed.
IRS statement effectively saying they're working on new forms
Turbo tax FAQ saying new forms are being worked on & software will be updated
Turbo tax FAQ saying new forms are being worked on & software will be updated
ℬête Noire
Active Member
My accountant was insistent on not filing with the draft version of the forms, as well.
P.S. Also urged me to wait rather than file for the partial refund, that making an amendment would probably delay it more than just waiting it out. Hopefully the IRS hits their scheduled release date.
P.S. Also urged me to wait rather than file for the partial refund, that making an amendment would probably delay it more than just waiting it out. Hopefully the IRS hits their scheduled release date.
cpa
Active Member
I have the privilege of downloading updated tax software three times per week during this part of the cycle. I have the further privilege of notifying some clients that I cannot file their returns yet do to various forms either unavailable or in draft form.
It is always (yes, absolutely) always better to wait and file when the forms are in their final status than filing early and then filing a 1040X later. An e*filed return will breeze through the internal mechanisms at the IRS so that any refund is either cashed out or applied to the following year's ES payments. Amended returns are processed manually and scrutinized by a clerk to validate that all the amounts match up and that any necessary supporting documents and forms/schedules are attached. If something is missing, the IRS returns your entire 1040X to you with additional homework to attach and resubmit. At best an amended return will be processed in about three months, some longer, and others kicked to audit depending upon what the amended return is about and the dollar amount of any claimed refund.
And if that means going on extension, so be it. Once per year should be our goal when it comes to dealing with the IRS.
***There is a little-known procedure called filing a superseding return. This is a tricky area, and I do not recommend doing this by yourself.***
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