As of now, I'm not sure whether I qualify for the $7500 tax credit. I'm waiting on my Chase brokerage 1099 to see if I can make the 300K AGI. If I don't make it, I'll just end of leasing as I'm sure I'll switch to another new car in 3 years. I just hoped Tesla would have discounted the leases as well.
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Tax Credit and leasing
- Thread starter carguyatl
- Start date
ATPMSD
Active Member
Not sure that will help. Assuming you took delivery of the car in 2023, the tax credit will be for the 2023 return and it is a little early to figure your AGI for 2023 tax year.
But you can qualify based on the prior year's MAGI. So if they are under for 2022, they know they will qualify for the credit on their 2023 return.Not sure that will help. Assuming you took delivery of the car in 2023, the tax credit will be for the 2023 return and it is a little early to figure your AGI for 2023 tax year.
I'm still waiting for my VIN to be assigned. I ordered a Model YP White/White/No Tow on 1/31.Not sure that will help. Assuming you took delivery of the car in 2023, the tax credit will be for the 2023 return and it is a little early to figure your AGI for 2023 tax year.
I'm trying to figure out my 2022 AGI since I've read that we can use the previous year AGI as well. I know for sure, our 2023 AGI will be too high. My wife just recently got a huge promotion so our income definitely won't apply in 2023.
Exactly. I'm just waiting for Chase to upload the 1099 for my brokerage on 2/15 so I can figure out if we quality for the credit or not. If not, then I'm definitely leasing as I often like to switch out new vehicles and I don't like driving vehicles out of warranty.
Tesla rep told me this morning they arent passing on any credit with the lease. The reason I know, is that I ordered a MYP when it didnt qualify for the credit, and now that it does, the lease price has not changed whatsoever. So, I'd have to buy it if I want to capture the 7500 for myself. Is it worth it? Not sure for me if it is. Leasing still makes sense for business reasons.
We already did that in 2022 and hit the caps for both 457/401k.
ATPMSD
Active Member
Here is the IRS reference on the AGI use in the prior year:
“You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.”
www.irs.gov
“You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.”
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.
I would be shocked if that’s true. I would expect to receive the lease as a cap cost reduction (effectively a down payment) on the lease from onset. That’s how it worked on my 4xe lease. Without the credit, the lease simply isn’t worth it for me (and I don’t qualify for it on a purchase). Due to the new tax laws I was interested in an MYP, but without it…forget it.
As of right now, Tesla is not passing on the federal tax credit in the form of a cap cost reducing incentive, as per some dude I texted from a 510 area code. I requested more information as to why not and have not received an answer.
GreenCoffee
Member
I thought you could use the current year or the year before?Not sure that will help. Assuming you took delivery of the car in 2023, the tax credit will be for the 2023 return and it is a little early to figure your AGI for 2023 tax year.
ATPMSD
Active Member
You can use the lower of the AGIs for 2022 or 2023 (Post #30). But I am pretty sure you have to wait to file under your 2023 return as both the rule is still being updated by the IRS, and because the transaction did not occur until 2023. But that is a good question for your tax accountant!
ATPMSD
Active Member
Careful, Tesla leases do not have a buy-out provision at end of the lease, and early termination is very expensive! And the money factor is very high. In fact you may find your monthly payments for loan is about the same as for a lease, and the value after say 3-years will likely be market value so you might be able to flip it for a profit.
And you get that tax credit, if you otherwise qualify!
Lease a Polestar 2. That's what I did. They're giving a $7500 cap cost reduction to make up for it not being able to qualify for the tax credit. I drove the Model 3 and Y, then a Polestar 2 with the plus, pilot, and performance packs, and the Polestar was a much nicer vehicle both inside and out. I have no regrets.
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