DIDN’T GET THE $7,500 FEDERAL TAX CREDIT!

[Trbizwiz]

The 1995 does not factor in. 2024 CTs are not eligible period, regardless of pricing.

Even if it was discounted to 60k, it's not eligible. People told you this weeks ago.

This is not entirely true. 2024 Trucks did qualify for the commercial EV tax credit. So its great for realtors, and business owners. Its a little trickier for everyone else. Big benefits to the commercial EV tax credit are that there is no upper income limit, and there is no price limit. In fact you can get up to $50K back on the commercial EV tax credit , if your vehicles GVWR is high enough. Cybertruck's weight ratio caps it at $7500

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[Lasttoy]

I sent my taxes in a month ago. I took the 7500 and tax credit for power storage.

 

[mongo]

I sent my taxes in a month ago. I took the 7500 and tax credit for power storage.

$7,500 commercial credit?

 

[cybercricket]

I sent my taxes in a month ago. I took the 7500 and tax credit for power storage.

if you mean EV credit and home energy credit, both for the truck, that's "double dipping" and that's definitely not allowed. Unless you meant you got a separate battery storage.

 

[sozucom]

I got my Cybertruck the same time as you and I was fully aware it would not qualify for the tax credit. I'm sorry you assumed it would have it. It can be confusing but with a purchase this large it's good to do your research first.

 

[Live2Pin]

It worked for me.. End of December I leased the CT and took advantage of the 2k referral, 1k military discount and 7500 credit. As soon as I drive off I did the lease buy out. Didn't even make my first lease payment and bought it with in 30 days. worked perfectly.

 

[Trbizwiz]

It worked for me.. End of December I leased the CT and took advantage of the 2k referral, 1k military discount and 7500 credit. As soon as I drive off I did the lease buy out. Didn't even make my first lease payment and bought it with in 30 days. worked perfectly.

This part concerns me about the lease, then buy out. But if it worked for you, it must be ok, I guess?
Q6. What factors are used to determine if a transaction is a “lease” for tax purposes? (updated February 3, 2023)
A6. Based on longstanding tax principles, the determination whether a transaction constitutes a sale or a lease of a vehicle for tax purposes is a question of fact. Features of a vehicle lease agreement that would make it more likely to be recharacterized as a sale of the vehicle for tax purposes include but are not limited to:

• A lease term that covers more than 80% to 90% of the economic useful life of the vehicle.
• A bargain purchase option at the end of the lease term (that is, the ability to purchase the vehicle at less than its fair market value at the end of the term) or other terms/provisions in the lease that economically compel the lessee to acquire the vehicle at the end of the lease term.
• Terms that result in the lessor transferring ownership risk to the lessee, for example, a terminal rental adjustment clause (TRAC) that requires the lessee to pay the difference between the actual and expected value of the vehicle at the end of the lease. (Note that special rules exist under section 7701(h) for qualified motor vehicle operating agreements that contains a TRAC.)

 

[mongo]

It worked for me.. End of December I leased the CT and took advantage of the 2k referral, 1k military discount and 7500 credit. As soon as I drive off I did the lease buy out. Didn't even make my first lease payment and bought it with in 30 days. worked perfectly.

That's the qualified clean commercial credit 45W, not the 30D Clean Vehicle Credit for individuals.
Technically, you did not get a tax credit. Tesla was the actual recipient of the credit and gave you favorable lease terms as a result.

 

[mongo]

This part concerns me about the lease, then buy out. But if it worked for you, it must be ok, I guess?
Q6. What factors are used to determine if a transaction is a “lease” for tax purposes? (updated February 3, 2023)
A6. Based on longstanding tax principles, the determination whether a transaction constitutes a sale or a lease of a vehicle for tax purposes is a question of fact. Features of a vehicle lease agreement that would make it more likely to be recharacterized as a sale of the vehicle for tax purposes include but are not limited to:

• A lease term that covers more than 80% to 90% of the economic useful life of the vehicle.
• A bargain purchase option at the end of the lease term (that is, the ability to purchase the vehicle at less than its fair market value at the end of the term) or other terms/provisions in the lease that economically compel the lessee to acquire the vehicle at the end of the lease term.
• Terms that result in the lessor transferring ownership risk to the lessee, for example, a terminal rental adjustment clause (TRAC) that requires the lessee to pay the difference between the actual and expected value of the vehicle at the end of the lease. (Note that special rules exist under section 7701(h) for qualified motor vehicle operating agreements that contains a TRAC.)

Tesla would be one at risk if it were recharacterized as a sale. However, the Form 8936 Schedule A doesn't call out a 30 day holding period for leases like it does for consumer purchases.

 

[Live2Pin]

That is correct. I didn't get the tax credit it come off the lease price. I think I put a little over 3 k cash down on the lease but on the lease paperwork it has it down as a little over 10k because of the 7500 ev credit.

 

[Trbizwiz]

Tesla would be one at risk if it were recharacterized as a sale. However, the Form 8936 Schedule A doesn't call out a 30 day holding period for leases like it does for consumer purchases.

That is very comforting to know. I've been talking to my tax preparer, to figure out if I might qualify for the commercial EV tax credit anyway. I do reviews on a website, and I usually have $15k or so in taxable income from that. I have the opportunity to do some reviews for Cybertruck stuff, but I haven't been able to as I don't have a Cybertruck. I know this business would not qualify me for section 179, as it would not necessarily involve driving. But it might qualify as a business purpose for the the commercial EV credit. Hopefully Ill know in the next few days. I may want to take advantage of these cheap interest rates. I don't believe the commercial credit is point of sale, but at least the cheap interest would minimize the impact of carrying the $7500 until next march. I'm just being cheap anyway, I could just sell some TSLA and buy the thing, but I am been enjoying the revenue of selling out of the money calls on Thursday, and watching them expire Friday at four and just collecting the premium. I can easily cover the Cybertruck payments of the premium alone. If I end up buying one, I may do a write up on it. Maybe it would help some other TSLA longs to justify buying a Tesla, while interest is cheap, and the stock is low. I'm no genius, but Its been working great since December for me. The trick is to not be greedy. Sell far enough out of the money that you don't get your shares exercised. Be prepared to pay to close a contract early, so you don't get your shares exercised. If you're not greedy, it is a nice little back door dividend play. It does accrue extra taxes at full tax rate though, which is why I want o find some deductions.

 

[CyberGus]

I didn't even get credit for the EVSE installation, something about not being in the right "zone"? ?‍

 

[cybercricket]

I didn't even get credit for the EVSE installation, something about not being in the right "zone"? ?‍

Indeed, there is a qualifier on whether your installation is located in a certain census zone. However, if one claims home energy credit for the truck's battery, then charging and any associated equipment can be claimed as well.

 

[JackCypher]

Was the truck for business or personal? If it is for business? There is no MSRP limitation and it should offset your taxable business income. For personal, 2024 models are not eligible.

Yup over 6,000 lbs there is a ~$30,000 federal tax offset for business vehicles [trucks]. I've used that for my CT.

 

[bg002h]

Pretty sure you got it backwards - to get every write off imaginable one has to be rich, everyone else gets peanuts

I should have said high income. The secret to becoming rich is never taking a gain or creating a taxable event. You can’t do that by earning wealth because of income tax.

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