$7,500 Tax Credit? FuelEconomy was updated on 10/1/2024 :(

[mongo]

This needs to be clarified. Assuming your business has $7,500 or more in tax liability you can file for the credit with your business tax return. If you just created a business to get the credit, but have no tax liability, you'll get $0 back. If your liability is less than $7,500, then you get that amount credit and lose the rest.

The business credit can roll forward to future years as a general credit.

Sponsored

 

[Crissa]

The business credit can roll forward to future years as a general credit.

You still need the tax liability.

-Crissa

 

[mongo]

You still need the tax liability.

-Crissa

Eventually...
If you have a business, ideally you'll make $7,500 in profit at some point.

 

[VAF84]

The business credit can roll forward to future years as a general credit.

Hopefully, I stand corrected. Obviously everyone needs to check in with their CPA. The reading I did indicated that it couldn't be split. I'm no CPA though.

 

[VAF84]

Eventually...
If you have a business, ideally you'll make $7,500 in profit at some point.

I think she's implying as I was that a member here shouldn't get tempted to create an LLC with the sole purpose of capturing this credit because it won't work.

 

[Crissa]

Eventually...
If you have a business, ideally you'll make $7,500 in profit at some point.

Eventually also fades out at a certain point, too. Rollover credit isn't forever.

-Crissa

 

[mongo]

Hopefully, I stand corrected. Obviously everyone needs to check in with their CPA. The reading I did indicated that it couldn't be split. I'm no CPA though.

Or with the IRS:

Who qualifies

Businesses and tax-exempt organizations qualify for the credit.

There is no limit on the number of credits your business can claim. For businesses, the credits are nonrefundable, so you can't get back more on the credit than you owe in taxes. A 45W credit can be carried over as a general business credit.

https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit

 

[mongo]

Eventually also fades out at a certain point, too. Rollover credit isn't forever.

-Crissa

Sure, at 20 years (assuming tax law doesn't change)
https://www.irs.gov/instructions/i3800

In general, unused general business credits may be carried back 1 year and carried forward 20 years. Unused marginal oil and gas well production credits may be carried back 5 years and carried forward 20 years. Unused credits listed in section 6417(b) may be carried back 3 years and carried forward 20 years.

If one doesn't make a $7,500 profit over 20 years (IIRC), the IRS tends to reclassify it as a hobby.

Regardless, I was addressing this statement:

If your liability is less than $7,500, then you get that amount credit and lose the rest.

 

[HaulingAss]

Now Elon is Trumps buddy so that law might not get revoked

Elon is not a fan of the tax credits either. So I doubt a Trump win would stop Trump from doing what he said he would do (repeal the EV tax credits). And Elon knows this.

 

[Jack27]

I heard if you call Tesla every day and twice on Tuesdays they will give you a tax credit after the 175th call . Worked for me.

Sponsored