Tax Credit Question Is it true ?

[Paul2017]

Shouldn't you run this by your Tax Preparer??

(Unless your tax preparer is TurboTax, in which case ... why would you (@$300K+ income with K1))

I would not trust internet advice... You have seen some of the replies... people to which have NO CLUE are posting.

I am using a Tax accountant, but he is busy/ asking for full details to give me an answer ( I can understand) I want to make the decision before the end of the month. It was more of a quick question to see if anyone is in similar position and figured things out. We have a lot inventory cars in bay area and I am going to buy MY at some point this year, I dont need it now, but if I can take advantage of the tax rebate why now.

Regarding my income its right at 300K and Cut off is at 300 for joint filing.

 

[trm2]

Seriously, every year? The car practically pays for itself after 9 years of credit. LOL

If you buy a qualifying car every year, yes. I just picked up my 5th car (over more than a decade) that qualifies. Additionally, if you have a tax liability of at least $15,000 you can get two a year. Tax liability of $22,500, go ahead and buy three, etc.

 

[beewang]

I am using a Tax accountant, but he is busy/ asking for full details to give me an answer ( I can understand) I want to make the decision before the end of the month. It was more of a quick question to see if anyone is in similar position and figured things out. We have a lot inventory cars in bay area and I am going to buy MY at some point this year, I dont need it now, but if I can take advantage of the tax rebate why now.

Regarding my income its right at 300K and Cut off is at 300 for joint filing.

Yes... I am a CPA and we are ALL BUSY at this time of the year. You are a paying customer... he (in theory) would know more about your tax/income situation than I. He can spare 10~15 mins chatting with you and give you his professional opinion. I would have to spend the time look thru your last few years of tax return and ask you some (dumb question, since I dont know you from dittly). in order to give you my profesional opinion. And since my arse is on the line, I am un-willing to do this "pro-bono" when I have all the liabilities..

Just saying,

beewang

 

[Irishmist]

Wanted to run this by you guys. I get K1 from my S corp and a W2. I always pay taxes because of the K1 income.
I will be filing jointly so my understanding is that 300K-(K1 from 2022 taken in 2023 180K) - (W2 120K Box1) - (second job W2 14KBox1).
This puts me just over 300K limit. I am paying a mortgage and other expenses.

If I am over 300 AGI I rather wait before buying Model Y, but If I would qualify I will pull the trigger.

Will you be <300K this year? Either last year or this year qualifies if <300K

 

[Paul2017]

Do you mean I can buy Model Y now in 2023 and use the credit for next year taxes (2023). But I can use 2022 tax return and AGI from 2022?

 

[DP26]

Wanted to run this by you guys. I get K1 from my S corp and a W2. I always pay taxes because of the K1 income.
I will be filing jointly so my understanding is that 300K-(K1 from 2022 taken in 2023 180K) - (W2 120K Box1) - (second job W2 14KBox1).
This puts me just over 300K limit. I am paying a mortgage and other expenses.

If I am over 300 AGI I rather wait before buying Model Y, but If I would qualify I will pull the trigger.

Pay for advice. With a k1 and w2, you may have the ability to legally income shift. But, in my experience, those that have the ability and knowledge to do so, don’t ask the general public for financial advice.

 

[Irishmist]

Do you mean I can buy Model Y now in 2023 and use the credit for next year taxes (2023). But I can use 2022 tax return and AGI from 2022?

Yes - 2023 EV Tax Credits (Clean Vehicle Tax Credit) - Plug In America.

"If you purchase a vehicle in 2023, in order to qualify for the tax credit, either your Modified Adjusted Gross Income (MAGI) for that taxable year (2023) or the preceding year (2022) must be below the threshold amount..."

6. What if you expect your income to be different in 2023 than 2022?
Assuming you are planning to purchase an EV in 2023, you will qualify based on the Modified Adjusted Gross Income (MAGI) that is the lesser of the two.

An example: You are a single filer and had a MAGI of $145,000 in 2022 but expect to make $155,000 in 2023. The single filer limit is $150,000. Your MAGI for 2022 is the lower of the two years, and that is what you will use to determine if your income qualifies. Since you have a MAGI of $145,000 below the $150,000 threshold, your income qualifies for the tax credit.

 

[jokoy54]

Tom is the delivery date of my new MYLR. Will i still get the $7500 tax credit?

 

[Mr_Joe]

Tom is the delivery date of my new MYLR. Will i still get the $7500 tax credit?

Yes, based on the guidance today. Taking delivery tomorrow and you will still qualify for the full tax credit.

 

[jokoy54]

Yes, based on the guidance today. Taking delivery tomorrow and you will still qualify for the full tax credit.

Thank you for that! They said irs will release the update tom thats why im worried about it

 

[Irishmist]

Mar 31 deadline extended to Apr 17 -
https://www.irs.gov/pub/taxpros/fs-2023-08.pdf

 

[jokoy54]

Qualified

 

[b00st2r]

Hey guys, I've researched but unable to find a clear cut answer to my question

I took delivery of a MY LR in February and the vehicle qualify for the 7,500 tax credit

I've looked into selling the current LR and buy a MY Performance since it now also quality for the tax credit

My spouse and I names are on the vehicle, would it be possible to sell the MY LR and buy the MY performance and be able to claim 2 ev credit? Or will I have to wait until next year

My taxes liabilities will cover the 15k

Thanks

 

[DP26]

While I have seen retention requirements (claw back) by states (they can monitor registration), I don’t think I’ve seen any such provision for federal.

 

[trm2]

While I have seen retention requirements (claw back) by states (they can monitor registration), I don’t think I’ve seen any such provision for federal.

The federal requirement is you can’t buy it for resale. So an auditor gone crazy can cause a slight headache, but shouldn’t be a problem.

 

[DP26]

“I traded/sold the first for a nicer model”. End of audit. Of course, the odds of audit are slim.

 

[mfmahoney]

INCORRECT 100%

I agree this is incorrect. You must have at least $7,500 in tax LIABILITY. Doesn't matter what you owe the following April.