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NFT: EV Tax Credit Questions

Capt. Don : 8/14/2022 10:14 am
This is not a political thread; please don't hijack it. I'm not here to debate the merits of the new law.

I ordered a Tesla Model Y last Thanksgiving and it is currently scheduled to be delivered between 9/14 and 10/14.

With the new law, Teslas are once again eligible for a tax credit but there are limitations that I have questions about:

1. Sedans must be under $55,000 and SUVs must be under $80,000. Is the Model Y a sedan or SUV? I think Tesla would call it a crossover but there is nothing in the law (that I've seen) about crossovers.

2. I've read that the new law takes effect in January of 2023. Is that accurate? Will Tesla allow me to delay delivery until January?

TIA
Love those buying $79,000 vehicles getting taxpayer subsidies  
KDavies : 8/14/2022 10:29 am : link
that said, you will want to consult a tax professional. Below is a good article on it. It lists which vehicles are ineligible. It does take effect January. The article references cars “put into service” after December 31, but you’ll want to check with a tax professional/read the law yourself to determine if that is the triggering date vs. the date vehicle is paid for.

There are also income maximums for those who can get the subsidies. Those are different whether the vehicle is new or used
Link - ( New Window )
It’s considered a midsized suv  
UConn4523 : 8/14/2022 10:31 am : link
don’t know how the credit works but you may have take tax into account plus a luxury tax, potentially. That could put you over unless it only goes off of the sticker price.
Details are not set yet  
Jim in Fairfax : 8/14/2022 10:36 am : link
Law takes effect 1/1/23. So if you take delivery before then, no credit. You’ll have to ask Tesla about delaying delivery.

As for whether Model Y qualifies as SUV, it hasn’t been determined yet. Laws don’t get into those kinds of specifics. It’s up to the IRS to figure out what qualifies and what doesn’t.
I thought it was  
PakistanPete : 8/14/2022 11:12 am : link
based on the EPA classification, which is SUV.

Tesla does hold, but you should be prepared for them to cancel the order without notice.

RE: Love those buying $79,000 vehicles getting taxpayer subsidies  
Payasdaddy : 8/14/2022 11:53 am : link
In comment 15780410 KDavies said:
Quote:
that said, you will want to consult a tax professional. Below is a good article on it. It lists which vehicles are ineligible. It does take effect January. The article references cars “put into service” after December 31, but you’ll want to check with a tax professional/read the law yourself to determine if that is the triggering date vs. the date vehicle is paid for.

There are also income maximums for those who can get the subsidies. Those are different whether the vehicle is new or used Link - ( New Window )


Happen to be a CPA, haven’t read thru it till it becomes final and t8meline becomes relevant
Still deal with the knew foreign k2/k3 reporting for partnership and s corps
They max them a complete reporting nightmare and client who own foreign interests have no clue how much their billing could go up. Between that and PFICS ( I work with client who have to report “ ownership” of 1000 plus foreign entities per return). It’s nuts.
Financial advisors fail to mention the cost of compliance when they push this stuff. I can stay in business for life with the complexities. But it’s mundane as hell. Especially with football coming ( most of the foreign stuff filed on extension- info rolls in around now)
RE: Love those buying $79,000 vehicles getting taxpayer subsidies  
upnyg : 8/14/2022 12:42 pm : link
In comment 15780410 KDavies said:
Quote:


There are also income maximums for those who can get the subsidies. Those are different whether the vehicle is new or used Link - ( New Window )


Didnt realize there was an income max, seems a bit unrealistice especially at the costs of the EVs.
Income max  
Csonka : 8/14/2022 12:47 pm : link
is $150K ... fyi.
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