Tax Credit Info

[Crimson_Fate]

Its a tax credit. You will only get back up to $7500 off of taxes you had already paid in that tax year. If you only have $3000 paid in you will only get $3000 in credit and the $4500 is lost ( it can not be carried foreward)

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[cvalue13]

I don’t think dealers will have any obligation or responsibility.

they already have reporting and collection obligations on other action items under the IRA

I don’t know why people find so surprising that the IRS/treasury could require dealers to require at least some nominal documentation from buyers regarding their potential tax expectations for the purchase year.

otherwise, people earning $1M/yr can get a $7.5K loan from the government, no?

Not to mention how lenders may ask after confirmatory purchase price info so as not to having people artificially reducing the loan-to-income calculation?

 

[Trbizwiz]

Its a tax credit. You will only get back up to $7500 off of taxes you had already paid in that tax year. If you only have $3000 paid in you will only get $3000 in credit and the $4500 is lost ( it can not be carried foreward)

This is not entirely true. “If you only have $3000 paid in you will only get $3000 in credit and the $4500 is lost “
If you owe $7500 or more, and pay in $3000, the other $4500 will be applied to the taxes you owe, reducing your tax bill by that amount. So it won’t come to you in the form of a check, but it’s not lost, because you don’t have to pay it in. If you over paid by $3000 in 2022, and owed $7500, you just recently wrote a check for $4500. If the factors are the same next year, except you bought a qualifying EV, you would simply owe nothing on your taxes.

 

[Crimson_Fate]

This is not entirely true. “If you only have $3000 paid in you will only get $3000 in credit and the $4500 is lost “
If you owe $7500 or more, and pay in $3000, the other $4500 will be applied to the taxes you owe, reducing your tax bill by that amount. So it won’t come to you in the form of a check, but it’s not lost, because you don’t have to pay it in. If you over paid by $3000 in 2022, and owed $7500, you just recently wrote a check for $4500. If the factors are the same next year, except you bought a qualifying EV, you would simply owe nothing on your taxes.

I belive we are saying the same thing . I just looked at it from the point of total tax liability ( Paid + owed) . The total tax lability must be >= $7500 in order to apply that full credit . If that Liability was only $3K you can only apply a 3K of the tax credit to the total liability , the other $4500 can not be applied

 

[Trbizwiz]

I belive we are saying the same thing . I just looked at it from the point of total tax liability ( Paid + owed) . The total tax lability must be >= $7500 in order to apply that full credit . If that Liability was only $3K you can only apply a 3K of the tax credit to the total liability , the other $4500 can not be applied

What you said is true. I was just saying that tax liability, and what one pays in are not the same thing. Some people pay in more than their tax liability, and get a refund. Others pay in less than their tax liability and they owe additional tax at tax time. People from either group could benefit from the $7500 credit, albeit in different ways.

 

[Zinc]

What you said is true. I was just saying that tax liability, and what one pays in are not the same thing. Some people pay in more than their tax liability, and get a refund. Others pay in less than their tax liability and they owe additional tax at tax time. People from either group could benefit from the $7500 credit, albeit in different ways.

Or not benefit at all. Alot of people with already enough deductions that the 7.5k is a deterrent rather than a positive. An example would be those with rental home depreciation, or a myriad of other deductions. Smart people will not want to pay 5k to 7k more for a car than their neighbors Y or 3, especially a 42k car. As a believer and investor in tsla, there should be a better way.

 

[CyberGus]

Or not benefit at all. Alot of people with already enough deductions that the 7.5k is a deterrent rather than a positive. An example would be those with rental home depreciation, or a myriad of other deductions. Smart people will not want to pay 5k to 7k more for a car than their neighbors Y or 3, especially a 42k car. As a believer and investor in tsla, there should be a better way.

The union of "people that can afford a $45k new car" and "people that pay less than $7500 tax" is very small.

 

[Gurule92]

Didn't wanna read all the posts but the harsh braking after letting go of pedal is the regen and or the blended braking. Word on the street is, they are bringing back the adjustment option but you get used to it. Just need to slowly let off and not full release.

Takes time to learn it. But it's better

 

[Zinc]

Didn't wanna read all the posts but the harsh braking after letting go of pedal is the regen and or the blended braking. Word on the street is, they are bringing back the adjustment option but you get used to it. Just need to slowly let off and not full release.

Takes time to learn it. But it's better

It wasn't too bad, and I figured I would get used to it easily. By the time the test drive was over, I was already writing it off as an electric car thing. Refreshing to hear that it is just another option.

 

[SolarWizard]

The easiest way to understand the tax credit is to stop thinking of taxes and think of shopping at costco.
IF you don’t earn too much money (that stipulation is absolute dog shit if you ask me), AND you buy a Cybertruck AND its below $80,000 You get a $7500 card to shop at costco for the year you in which buy it.

if you don’t use up the $7500 credit in the year, you lose the remainder. If you’re counting on the tax credit to make the truck affordable, you should talk to a cpa about the likelihood of you using up a $7500 costco card that year.

 

[Crissa]

Someone earning $30K a year is unlikely to be buying a new car.

-Crissa

 

[Zinc]

The easiest way to understand the tax credit is to stop thinking of taxes and think of shopping at costco.
IF you don’t earn too much money (that stipulation is absolute dog shit if you ask me), AND you buy a Cybertruck AND its below $80,000 You get a $7500 card to shop at costco for the year you in which buy it.

if you don’t use up the $7500 credit in the year, you lose the remainder. If you’re counting on the tax credit to make the truck affordable, you should talk to a cpa about the likelihood of you using up a $7500 costco card that year.

You remind me of a friend in Long Island telling me he doesn't care that taxes on an 1800sf home are 20k because he has a few mil in the bank. It has nothing to do with affordability, it has everything to do with buying badly. Would you spend an additional 7.5k on a Corolla just because you could afford it? Not me, in fact since I liked the Y so much and refuse to lose the credit, I am looking at the Taycan as an option to break into the EV market.

 

[SolarWizard]

What the hell does that even mean?

 

[DrShah]

I am a February 2021 Dual motor reservation so not sure when that will be available, hoping within 1 year. Today went and test drove a Y performance to maybe pick up prior to the cybertruck and really liked it. Nobody in the place had answers to the tax credit. If I owed on my taxes an additional 3k at year end, the tax credit would wipe the $3k and the $4.5k balance would come by check?

Can anyone explain further on the credit?

Thoughts on the Y, loved the tightness of the vehicle, steering and suspension felt solid, no creeks or rattles. Awesome room in the back for a K9 and amazing sound system. I spent a grand on sound upgrade in my Gladiator and the Y stereo was still better. One thing that was very different is coasting was non existent. You let off the pedal and it feels like the emergency brake is on. I actually stopped to see where the emergency brake was which I never found. No biggie and if I can figure out the tax credit, I might just add a Y model.

I bought a Model Y LR in June 2021 waiting for the Cybertruck, so glad I did! 2 years & 60,000 miles later it has been absolutely fantastic! Zero regrets, it’s an awesome daily driver! You won’t be disappointed. I’m going to give it to my wife whenever I get the CT & sell her Honda Pilot.

 

[DrShah]

I got tired of waiting for the tax credit back in June 2021 and unfortunately I don’t qualify anyway so I’m happy I didn’t wait.

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