Tax Credits

[TaxmanHog]

This is true. My other hesitation was the unknown as to whether I qualify for it or not next year. I can borrow money from myself to get the payment where I need it for a little while, but not indefinitely

With tax year 2023 factors being up in the air, I would be very conservative about how much to factor my W4 adjustment and not get caught short [tax balance owed] when you file Spring of 2024, The latest update tax debt interest will go up to 7% starting next year, another year later God knows what it could be at with more inflation!!!!!!

Um, you'll be filing after the final new version of the relevant tax form is created. Last year, a fairly common form I needed wasn't updated by the IRS until mid March. It took TurboTax another 2 weeks to update their SW.

The tax year 2022 draft I have seen has no major change, the major design changes come on the tax year 2023 version to be filed in 2024.

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[Dirtyrider89]

Does 2022 lightning still qualify for putting a charger in your house

 

[TaxmanHog]

Is there ANY ice cube's chance in hell that I will qualify in any way to get ANY tax credit with me paying 88k msrp AND delivery won't be until February 23, or should I give up hope?

I was hoping that with all of the confusion, congress or someone would postpone this until they figure out how they are going to enforce this new law.

*fingers crossed*

Nope the senator haling from GA who is in a run off hopes to pass a bill that delays implementation to later year was filed recently, as far as I know it won't go anywhere legislatively, unless they tag it onto a major piece of legislation to come down from congress, that will be either an omnibus spending bill or a continuing resolution punting the budget by 12/16/2022 until the new congress is seated on 1/3/2023

 

[TaxmanHog]

Does 2022 lightning still qualify for putting a charger in your house

30% of project costs not to exceed $1000

 

[shutterbug]

The tax year 2022 draft I have seen has no major change, the major design changes come on the tax year 2023 version to be filed in 2024.

Yes, may very well be available right away. Have you seen instructions for it yet?

 

[TaxmanHog]

Yes, may very well be available right away. Have you seen instructions for it yet?

The instructions are the same as last January 22 revision, they have not published any current draft revision, assuming there are no major adjustments to TY-2022 form the instruction will remain static to minimize transition year (2023) issues.

Once the TY-2023 procedures are ironed out those variants will come out next summer/fall after the bulk of folks have filed their 2022 tax returns.

 

[RickLightning]

Does 2022 lightning still qualify for putting a charger in your house

The vehicle is irrelevant for the 30% credit for installing EVSEs. Charger plus wiring, up to a $1,000 credit (i.e. you could spend up to $3,333). In fact, no EV is required if you want to install a charger for say a rental house.

 

[metroshot]

The instructions are the same as last January 22 revision, they have not published any current draft revision, assuming there are no major adjustments to TY-2022 form the instruction will remain static to minimize transition year (2023) issues.

Once the TY-2023 procedures are ironed out those variants will come out next summer/fall after the bulk of folks have filed their 2022 tax returns.

I really hope the IRS leaves the 2022 EV purchasers alone.

My tax preparer & I would appreciate it so that I can file my taxes early in 2023 for the Lightning purchase.

OTOH, my wife's incoming MME will be subject to the new rules since it's being delivered in early 2023.
Nail biting year in store on her MME....
Just got the window sticker - build week is next week:

 

[Texas Dan]

Is there ANY ice cube's chance in hell that I will qualify in any way to get ANY tax credit with me paying 88k msrp AND delivery won't be until February 23, or should I give up hope?

I was hoping that with all of the confusion, congress or someone would postpone this until they figure out how they are going to enforce this new law.

*fingers crossed*

There is always hope as long the 2023 tax rules have not been finalized. I was expecting the tax credit to disappear for Ford anyway because Ford met the 200,000 unit benchmark so there’s more hope than before. But I was expecting Ford to lower prices once they met the benchmark to stay competitive and it looks like that was wishful thinking.

 

[metroshot]

Is there ANY ice cube's chance in hell that I will qualify in any way to get ANY tax credit with me paying 88k msrp AND delivery won't be until February 23, or should I give up hope?

I was hoping that with all of the confusion, congress or someone would postpone this until they figure out how they are going to enforce this new law.

*fingers crossed*

If I was taking delivery in 2023 for an EV over $80K, and not getting the $7500 credit for TY-2023, I'd consider starting a small business to capture the Section 179 tax deduction.

I have a small business for the past 20 years and have used that tax deduction depreciated over a 5 year period.

But since the GVWR is over 6000 lbs on the Lightning, it falls under the "Heavy Section 179 Vehicle" and can get up to $26,000 deducted or more depending on how the tax rules apply for TY-2022....

Since I can't double dip, my '22 Lightning will get the $7500 tax credit in 2023 against my W2.

 

[bewbie]

Sorry but just to clarify, the federal tax incentive for a MY22 purchased this year should be $7,500 correct? And does this work as a tax write off or do you receive $7,500 no matter your deductions for the year?

 

[metroshot]

Sorry but just to clarify, the federal tax incentive for a MY22 purchased this year should be $7,500 correct? And does this work as a tax write off or do you receive $7,500 no matter your deductions for the year?

It can be for '22 or '23 delivered and signed for by 12/31/22.

Tax credit means you have to have tax liability to claim it.

If you don't have the tax liability for 2022, you can't claim it.

 

[Maxx]

It can be for '22 or '23 delivered and signed for by 12/31/22.

Hold it, this is totally new to me an potentially very important. Can you expand? Mine is going to be built this month but likely to be delivered in January. Are you saying as long as I do the paperwork with the dealer this month, I can claim the $7,500? would dealers agree without the truck in their possession? I assume I will have to make the payment in 22 so any risks or downside for me? has anyone done it in previous years?

 

[metroshot]

Hold it, this is totally new to me an potentially very important. Can you expand? Mine is going to be built this month but likely to be delivered in January. Are you saying as long as I do the paperwork with the dealer this month, I can claim the $7,500? would dealers agree without the truck in their possession? I assume I will have to make the payment in 22 so any risks or downside for me? has anyone done it in previous years?

Most dealers will NOT start a contract without the vehicle on premises.

Ford has recently slapped a lot of dealers' hands when they tried to boost their sales to reach volume numbers.

You can ask your dealer, but most likely they will refuse to sign docs before the truck arrives.

 

[RickLightning]

Sorry but just to clarify, the federal tax incentive for a MY22 purchased this year should be $7,500 correct? And does this work as a tax write off or do you receive $7,500 no matter your deductions for the year?

A write-off is a expense that lowers your income. This is not a write-off.
A deduction reduces your income.

This is neither.

This is a tax credit, a non-refundable tax credit. If you take delivery by 12/31/22, and you have tax liability of at least $7,500, you can take the full tax credit. This is for 2022 deliveries, not the new tax law in 2023.

Example:

Ed earns $100,000. He has a tax liability of $15,000 ($100,000 x 15%, example only). He withholds $14,000 in his paychecks.

$15,000 tax liability - $7,500 tax credit = $7,500 tax liability - $14,000 withheld = $6,500 refund.

Bob earns $40,000. He has a tax liability of $4,000. He withholds $5,000 in his paychecks.

Bob is screwed. He only can use $4,000 of the tax credit, throwing away $3,500 of it. What a loser. He could have done a Roth conversion. Bob gets at tax refund of $5,000. Maybe he shouldn't have bought an $80,000 truck...

Hold it, this is totally new to me an potentially very important. Can you expand? Mine is going to be built this month but likely to be delivered in January. Are you saying as long as I do the paperwork with the dealer this month, I can claim the $7,500? would dealers agree without the truck in their possession? I assume I will have to make the payment in 22 so any risks or downside for me? has anyone done it in previous years?

The IRS rules state it must be purchased and put into service. A vehicle that hasn't arrived at the dealership yet can't be put into service. While a dealer may play with the paperwork for rebates with Ford or such, if they helped you do this you'd both be committing tax fraud. You must HAVE the vehicle and put it into use.

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