Usually get refund. How should i prepare for EV credit?

[biers]

Anyone know what happens if you sell your car/truck?

I'll be claiming the full 7500 this year on my 21 PHEV purchased in Sept 21. Do I need to keep it for a certain amount of time?

Nothing.
The law says you can’t buy it to resell it. So if you got audited I would think they would have to prove you bought it intending to sell it. If you bought it and decided on day two it wasn’t for you and sold it you should be fine. That being said, I’m not a CPA or tax lawyer.

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[TaxmanHog]

Correct, the current EV Credit is nonrefundable, which means it can only be deducted from taxes you actually owe (unlike a refundable credit, in which you get the whole amount regardless of what line 24 says). Line 24 is your tax liability, and therefore the maximum you can get back from the EV credit.

Referring to line 24 is miss leading in certain tax scenarios, stick with the tax sum at line 18

 

[TheRealDlo]

SO my line 24 shows about $12,000 in 2021.

Does that mean if I get my Lightning in 2022 that I can reduce that # by 7500?

So line 24 would then read 4500?

 

[RickLightning]

SO my line 24 shows about $12,000 in 2021.

Does that mean if I get my Lightning in 2022 that I can reduce that # by 7500?

So line 24 would then read 4500?

Conceptually, yes.

 

[shutterbug]

SO my line 24 shows about $12,000 in 2021.

Does that mean if I get my Lightning in 2022 that I can reduce that # by 7500?

So line 24 would then read 4500?

Yes, assuming your income and tax law are still the same. The tax credit would be included on line 20.

 

[TaxmanHog]

SO my line 24 shows about $12,000 in 2021.

Does that mean if I get my Lightning in 2022 that I can reduce that # by 7500?

So line 24 would then read 4500?

What is on your line line 23? if it's zero, and your tax year 2022 situation is similar to tax year 2021 and you take delivery of and title to the truck in 2022, then you would enjoy the full benefits of the prevailing credit, which we expect will still be $7500 by the end of this year.

Pasting the image of form as an ongoing reminder the certain OTHER taxes like "Self Employment tax" are on line 23 and the sum at line 24 and can not debit the EV credit up on line 20

 

[jazzmanmonty]

So new question. When your EV sale is finalized, does Ford tell you "You've just purchased the 199,840th EV we've made." ? Or do they give you some form you file with your taxes? Never purchased an EV before so its all new to me.

 

[shutterbug]

So new question. When your EV sale is finalized, does Ford tell you "You've just purchased the 199,840th EV we've made." ? Or do they give you some form you file with your taxes? Never purchased an EV before so its all new to me.

Neither. IRS publishes the state of credit for every manufacturer by quarter. When you file your taxes, all you have to give them is year/make/model, date car is placed in service, VIN, and phaseout %. Right now phaseout % is 100%, unless you're buying GM or Tesla. If Ford enters phaseout, instructions to form 8936 will let you know what it is.

 

[jazzmanmonty]

Neither. IRS publishes the state of credit for every manufacturer by quarter. When you file your taxes, all you have to give them is year/make/model, date car is placed in service, VIN, and phaseout %. Right now phaseout % is 100%, unless you're buying GM or Tesla. If Ford enters phaseout, instructions to form 8936 will let you know what it is.

So assume Ford hits 200K sold on July 2nd, as long as you complete the purchase of the Lightning by Dec. 31st, you'll get the full EV credit. Then on Jan 1st, EV credit gets cut in half...correct?

 

[shutterbug]

So assume Ford hits 200K sold on July 2nd, as long as you complete the purchase of the Lightning by Dec. 31st, you'll get the full EV credit. Then on Jan 1st, EV credit gets cut in half...correct?

Yes, byt the IRS will publish that info.

 

[Nick Gerteis]

So assume Ford hits 200K sold on July 2nd, as long as you complete the purchase of the Lightning by Dec. 31st, you'll get the full EV credit. Then on Jan 1st, EV credit gets cut in half...correct?

All the educated guesses on here point to Ford hitting that mark a little later than that, like Q3 or even 4. We’ll see, pretty sure all early reservations will qualify for full credit.

 

[sotek2345]

All the educated guesses on here point to Ford hitting that mark a little later than that, like Q3 or even 4. We’ll see, pretty sure all early reservations will qualify for full credit.

July 2nd is Q3.....

 

[PungoteagueDave]

All the educated guesses on here point to Ford hitting that mark a little later than that, like Q3 or even 4. We’ll see, pretty sure all early reservations will qualify for full credit.

Likely about half of first-day reservations will get the full credits with the other half of first-day reservations getting the half credit. Unless a LOT of first day reservations drop out, there likely won't be any credits available to purchasers after the first day reservations.

Ford has under 40k creditable vehicles sales left as of Jan 1 (39,420 to be exact), is selling MMEs and several other qualifying cars at a very fast pace, with the first Lightnings not being delivered until June at the earliest, and assuming 4,000 MMEs and other Ford EV's per month at current delivery pace, will burn through 24,000 by the time Lightning deliveries begin in June. So we'll have about 15,000 remaining credits available when Lightning deliveries start, and will continue to compete with the MME. Ford would run out of credits this year with no Lightning sales.

https://evadoption.com/ev-sales/federal-ev-tax-credit-phase-out-tracker-by-automaker/

 

[Nick Gerteis]

Likely about half of first-day reservations will get the full credits with the other half of first-day reservations getting the half credit. Unless a LOT of first day reservations drop out, there likely won't be any credits available to purchasers after the first day reservations.

Ford has under 40k creditable vehicles sales left as of Jan 1 (39,420 to be exact), is selling MMEs and several other qualifying cars at a very fast pace, with the first Lightnings not being delivered until June at the earliest, and assuming 4,000 MMEs and other Ford EV's per month at current delivery pace, will burn through 24,000 by the time Lightning deliveries begin in June. So we'll have about 15,000 remaining credits available when Lightning deliveries start, and will continue to compete with the MME. Ford would run out of credits this year with no Lightning sales.

https://evadoption.com/ev-sales/federal-ev-tax-credit-phase-out-tracker-by-automaker/

I think your numbers are good, but let’s not forget that the full credit is still available for two quarters after they reach 200K sales. Without a limit on the number of people that can qualify for it during that time frame. IOW just as the floodgates are starting to open for the Lightning.

 

[Ken]

but you get the full tax credit for two quarters after they hit 200k sales, so that means potentially deliveries into 1Q cy23 will also qualify.

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