So I guess if you’re ordering at the end of December and then take delivery in January, you MVPA would change.
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Tax credit 2023 [The tax credit discussion thread]
- Thread starter CrazyRabbit
- Start date
I'm in a similar boat. If I sell my current vehicle then take delivery after Jan 1 and the tax credit is removed, I would be out $7500 (or half of that)...
So is it safe to say this wouldn't happen?
On another note, I thought I read they COULD just apply the credit directly off the price of the vehicle (see below article)... but I'm not sure if this will be implemented or not.
New rules may make it easier to knock up to $7,500 off the price off an EV—here’s how to qualify
So is it safe to say this wouldn't happen?
On another note, I thought I read they COULD just apply the credit directly off the price of the vehicle (see below article)... but I'm not sure if this will be implemented or not.
New rules may make it easier to knock up to $7,500 off the price off an EV—here’s how to qualify
Point of sale credit will be implemented, but the vehicle still has to qualify in order to get it.
Also, it acts like additional down payment, not dealer side price reduction (no impact on sales tax).
The IRA Inflation Reduction Act guidelines require that the dealer provides a signed document stating the vehicle you bought qualifies for tax credit. The document should have
VIN number,
your Social Security number,
battery kWh,
dealer/seller tax ID
Date of sale
value of tax credit
and signature of person authorized to bind the selller.
I bought a Ford Lighning about a month ago and the dealer provided the required completed form but I never got anything from Tesla we bought in March 2023.
Has anyone received a similar Tesla form or pushed for this?
VIN number,
your Social Security number,
battery kWh,
dealer/seller tax ID
Date of sale
value of tax credit
and signature of person authorized to bind the selller.
I bought a Ford Lighning about a month ago and the dealer provided the required completed form but I never got anything from Tesla we bought in March 2023.
Has anyone received a similar Tesla form or pushed for this?
Hello my wife and I are looking to buy a Tesla Model Y that meets the $7,500 tax credit before 12/31/2023. We have recently gotten married this year and plan to file jointly for 2023 but filed seperately in 2022. My question is specifically around the income limitation. Per my reading of the IRS website it states the income limitation is if over $300k MAGI filing jointly you are not eligible for the tax credit. We believe we will go over that income limit for 2023. However, the IRS site also states that its the prior year or current year return. Each of us individually did not meet the $150k filing single limit or if combined last year would not have reached the $300k. With that said, I am just curious since we will be filing jointly this year and be over the income limit for the refund but we filed seperately last year and were under the limit would we be eligible for the tax credit if we purchased a eligible EV car before 12/31/2023?
Would it make more sense for just one of us to buy the car in one's name to reduce the complexity's? Or potentially worth to file seperately for this year to ensure we get the tax credit?
I know this is a quite unique situation and am just concerned about the change from filing seperately to jointly this year and IRS realizing that last year each of us were under the income limit in 2022.
Would it make more sense for just one of us to buy the car in one's name to reduce the complexity's? Or potentially worth to file seperately for this year to ensure we get the tax credit?
I know this is a quite unique situation and am just concerned about the change from filing seperately to jointly this year and IRS realizing that last year each of us were under the income limit in 2022.
From IRS guidance, you sound eligible.
"If your filing status changes between the preceding year and the current year, you may claim the new clean vehicle credit if your modified AGI is at or below the threshold in the preceding year or current year based on applicable filing status for that year. "
Also
"Q11. Can the new clean vehicle credit be split between multiple owners? (added March 31, 2023)
A11. No. In certain instances, multiple taxpayers may purchase, place in service, and be titled as owners of a single vehicle. For example, a married couple that files separate tax returns may jointly purchase and take possession of a new clean vehicle that qualifies for the credit and both be titled as owners of the vehicle.
However, only one taxpayer can claim the new clean vehicle credit per vehicle placed in service, and the credit may not be allocated or prorated between multiple taxpayers. In the case of married taxpayers filing jointly, either spouse may be identified as the owner claiming the new clean vehicle credit. The name and taxpayer identification number of the owner claiming the credit new clean vehicle credit should be listed on the seller’s report. See Topic B, FAQ 9.
Accordingly, multiple owners of a new clean vehicle should inform the seller which owner will claim the new clean vehicle credit so that the seller can identify that taxpayer on the seller’s report. The credit would be allowed only on the tax return of the owner listed in the seller’s report. "
https://www.irs.gov/pub/taxpros/fs-2023-08.pdf
I bought a Tesla Y on December 2nd. Tesla gave me a note in the car that had my name and notes on the back with details of the purchase. One of the details is that I should check IRS documents for information on the $7500 rebate. I did check the IRS documents. And it shows that Tesla has not followed the regulations from the IRS for me to be able to claim the $7500 rebate.
I have attached a part of the document on the IRS site. The document from the IRS spells out the requirements that the seller, including manufacturers that sell directly, must accomplish for the purchaser to get the rebate.
The way I read this report is that I should have received the report on the day of the purchase that is outlined below. .
Also Tesla has to report the information that is required to the IRS before January 15th in order for me to obtain my rebate.
If I do not receive the report and IRS does not receive the notification from Tesla, I could be denied the $7500 rebate. Has anyone received a signed report detailed below?
If not, anyone who has bought a Tesla in 2023 could get their rebate denied by IRS.
IRS link
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
Click on Report your name and Taxpayer information to the IRS
Copied from the IRS Document attached
Report Required Information
For a buyer to receive a tax credit, Seller must report clean vehicle credit information to Buyer at the time of sale and later to the IRS.
Report Information to the IRS
You must submit required information about a qualifying clean vehicle sale to the IRS by January 15 of the year following the purchase. The first reports are due to the IRS by January 15, 2024.
Your first step in reporting is to register your business for clean vehicle credits. Later you'll be able to submit time-of-sale reports directly to the IRS using the same tool. Register your business for clean vehicle credits Report Information to Buyers
You must provide the following information to buyers at the time of sale:
Seller/Dealer name and taxpayer ID number
Buyer's name and taxpayer ID number
Maximum credit allowable under IRC 30D for new vehicles or IRC 25E
For previously owned vehicles Vehicle identification number (VIN), unless the vehicle is not assigned one
Battery capacity
Date of sale
Sale price For new vehicles,
verification that the buyer is the original user IRC 25E 12/5/23, 1:17 PM
Clean Vehicle Credit Seller or Dealer Requirements | Internal Revenue Service
Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”
Find more details in Rev. Proc. 2022-42, “Submission of Information to IRS by Qualified Manufacturers of Clean Vehicles, Previously-Owned Clean Vehicles, and Commercial Clean Vehicles; Submission of Information to IRS by Sellers of Clean Vehicles and Previously-Owned Clean Vehicles .” Related
Any Tax Attorneys or CPAs have an opinion if we need to push Tesla to provide the report? Tesla tells me, they gave me an invoice , that is all I need.
I have attached a part of the document on the IRS site. The document from the IRS spells out the requirements that the seller, including manufacturers that sell directly, must accomplish for the purchaser to get the rebate.
The way I read this report is that I should have received the report on the day of the purchase that is outlined below. .
Also Tesla has to report the information that is required to the IRS before January 15th in order for me to obtain my rebate.
If I do not receive the report and IRS does not receive the notification from Tesla, I could be denied the $7500 rebate. Has anyone received a signed report detailed below?
If not, anyone who has bought a Tesla in 2023 could get their rebate denied by IRS.
IRS link
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
Click on Report your name and Taxpayer information to the IRS
Copied from the IRS Document attached
Report Required Information
For a buyer to receive a tax credit, Seller must report clean vehicle credit information to Buyer at the time of sale and later to the IRS.
Report Information to the IRS
You must submit required information about a qualifying clean vehicle sale to the IRS by January 15 of the year following the purchase. The first reports are due to the IRS by January 15, 2024.
Your first step in reporting is to register your business for clean vehicle credits. Later you'll be able to submit time-of-sale reports directly to the IRS using the same tool. Register your business for clean vehicle credits Report Information to Buyers
You must provide the following information to buyers at the time of sale:
Seller/Dealer name and taxpayer ID number
Buyer's name and taxpayer ID number
Maximum credit allowable under IRC 30D for new vehicles or IRC 25E
For previously owned vehicles Vehicle identification number (VIN), unless the vehicle is not assigned one
Battery capacity
Date of sale
Sale price For new vehicles,
verification that the buyer is the original user IRC 25E 12/5/23, 1:17 PM
Clean Vehicle Credit Seller or Dealer Requirements | Internal Revenue Service
Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”
Find more details in Rev. Proc. 2022-42, “Submission of Information to IRS by Qualified Manufacturers of Clean Vehicles, Previously-Owned Clean Vehicles, and Commercial Clean Vehicles; Submission of Information to IRS by Sellers of Clean Vehicles and Previously-Owned Clean Vehicles .” Related
Any Tax Attorneys or CPAs have an opinion if we need to push Tesla to provide the report? Tesla tells me, they gave me an invoice , that is all I need.
I have also been concerned about this reporting issue, and in all the searching I've done I have never heard of a buyer actually receiving the report from Tesla. They are definitely not in compliance with that aspect of the regulations.
However, I think the thing that actually matters is that Tesla report the purchase to the IRS by 1/15/2024. I have seen that recent purchasers, even those paying without financing, are being asked to provide their SS number for reporting eligibility for the credit, so I think they are on top of this. I'm not too worried they won't follow through on this, because imagine the black eye they would get (and likely lawsuits) if nobody that purchased a Tesla this year got their credits.
However, I think the thing that actually matters is that Tesla report the purchase to the IRS by 1/15/2024. I have seen that recent purchasers, even those paying without financing, are being asked to provide their SS number for reporting eligibility for the credit, so I think they are on top of this. I'm not too worried they won't follow through on this, because imagine the black eye they would get (and likely lawsuits) if nobody that purchased a Tesla this year got their credits.
Tam
Well-Known Member
I talked to corporate today. They will be putting the report in your glovebox in the app on the next week or two.
I assume "Glovebox" is an old term that is no longer used, now called Documents in your Tesla.com account. Looks like below.
I'm not worried, Tesla won't let all the 2023 buyers miss out on the tax credits...they have a month to provide the doc.
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From my SC rep:
Hi (me), (SC rep) here from Tesla, I hope all is well and that you have been enjoying your new Tesla. We will receive a document from Tesla toward the end of the year showing that you have purchased an EV. Please keep monitoring your digital glovebox available in your account, that document once available, will be viewable there.
Hi (me), (SC rep) here from Tesla, I hope all is well and that you have been enjoying your new Tesla. We will receive a document from Tesla toward the end of the year showing that you have purchased an EV. Please keep monitoring your digital glovebox available in your account, that document once available, will be viewable there.
When we purchased our MY in March we didn’t get any IRS/IRA form. Plus I paid cash and don’t remember giving them my Social Security Number that is required when reported to the IRS.
When I called Tesla a few weeks ago they said I will receive the document before year end. They have 2 weeks to get it to me.
When we purchased a Ford Lightning a few months ago the dealer provided a Ford Form with all info required hand filled out.
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