Has anyone finished their Lightning purchase online?

[RickLightning]

oh wow! so once its at the dealer this is available or once its built/shipped? asking because mine is coming beginning of next year but will likely be shipped this year. would be nice to get the registration in my name this year so i can claim the federal credit

Vehicle is required to be put into use to claim the tax credit.

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[EdwinT]

Vehicle is required to be put into use to claim the tax credit.

"put into use" is just purchased/registered in your name I believe. That's why I was hoping to finish the paperwork once the vehicle was in route.

 

[RickLightning]

"put into use" is just purchased/registered in your name I believe. That's why I was hoping to finish the paperwork once the vehicle was in route.

It is not.

 

[EdwinT]

It is not.

Please elaborate. How would the IRS have any other way to know the vehicle is "in use" besides the vehicle being purchased and titled by the taxpayer claiming the credit?

As far as I can see...the law states these two things with respect to "use"
1. the original USE of the motor vehicle must commence with the taxpayer
2. the motor vehicle must be acquired for USE or lease by the taxpayer and not for resale

 

[TaxmanHog]

Have you heard the old adage "Possession is nine tenths of the law"

 

[shadycoh]

Please elaborate. How would the IRS have any other way to know the vehicle is "in use" besides the vehicle being purchased and titled by the taxpayer claiming the credit?

As far as I can see...the law states these two things with respect to "use"
1. the original USE of the motor vehicle must commence with the taxpayer
2. the motor vehicle must be acquired for USE or lease by the taxpayer and not for resale

so the answers are

1> I drove it off the lot so the original USE has been done

2> On the drive home I determined I did not like it as much as I would like the cash for selling it

 

[chrislittle]

Had a few questions from my previous response so I'm including a full pdf of the various screens I captured at the time in this post. it shows many of the screens at the time I used the system.

as shown my truck was a MY22 Pro, no trade in, used my own pre-approved financing. As such I didn't have to deal with some of complexities others asked about like the private offers. I was only able to checkout once it arrived at the dealer as someone else noted. apologize if I forgot any other questions.

 

[EdwinT]

Have you heard the old adage "Possession is nine tenths of the law"

so the answers are

1> I drove it off the lot so the original USE has been done

2> On the drive home I determined I did not like it as much as I would like the cash for selling it

haha I plan to keep it. @RickLightning has me confused now by his "it is not" claim above. Not sure what else could possibly be required, unless I am misunderstanding him.

 

[surferjoe]

In case it's helpful: Ford confirms MY Transition Rebate and Price Protection can be applied to purchases "completed" through online process, but application of price protection programs is completed at the dealership and remain "at dealership discretion." Some dealerships honor protections programs and some don't . . . I remain pretty floored that customers are left hanging like that.

 

[metroshot]

haha I plan to keep it. @RickLightning has me confused now by his "it is not" claim above. Not sure what else could possibly be required, unless I am misunderstanding him.

As much as you would like to register it before the end of the year, most Ford dealers would not allow you to sign a contract on a vehicle that is not on their lot.

Ford dealers have gotten in trouble with showing sold before it reached the lot.

It's like lying to your parent (FoMoCo) and the IRS.

Just don't rely on the tax credit and you are fine.

 

[RickLightning]

Correct. Title can't pass under most state laws if you don't have possession. When you fill out the paperwork, it includes a read of the odometer, which isn't possible since it's not there. And, the whole "use" thing. So, if you take delivery after 12/31/22, but you claim the current EV tax credit, that's simply tax fraud.

How would the IRS know? Well, you give them the VIN. They can see when it got titled. They can do an audit.

Do you want to commit tax fraud?

 

[ranger5ft21]

From what I've been reading, if you enter into a binding sale in 2022, even if the truck is delivered in 2023, you can still claim the tax credit. So if you put down a non-refundable deposit in 2022, that qualifies as a binding sale. It's dealership specific, so you would need to talk to your dealership to see if your deposit in non-refundable. (Not official tax guidance).

I saw it on a couple of sites when doing initial research and trying to find them again.

 

[TaxmanHog]

From what I've been reading, if you enter into a binding sale in 2022, even if the truck is delivered in 2023, you can still claim the tax credit. So if you put down a non-refundable deposit in 2022, that qualifies as a binding sale. It's dealership specific, so you would need to talk to your dealership to see if your deposit in non-refundable. (Not official tax guidance).

I saw it on a couple of sites when doing initial research and trying to find them again.

Wrong................

To take advantage of the TAX YEAR 2022 tax credit, one must complete the transaction by close of business 12/31/2022.

Everyone and their uncle are confusing the the safe harbor provision for NON North American built EV's, and for them delivery year impacts which provisions of tax code are engaged.

 

[cwstnsko]

From what I've been reading, if you enter into a binding sale in 2022, even if the truck is delivered in 2023, you can still claim the tax credit. So if you put down a non-refundable deposit in 2022, that qualifies as a binding sale. It's dealership specific, so you would need to talk to your dealership to see if your deposit in non-refundable. (Not official tax guidance).

I saw it on a couple of sites when doing initial research and trying to find them again.

There was a transition clause that preserved the tax credit beyond the end of the year, but the binding agreement had to be signed before the bill was signed into law, not before the end of the year. Even companies, like Rivian, that tried to take advantage of the transition clause came up short my not requiring a large enough non-refundable down payment.

 

[lightspeed]

"put into use" is just purchased/registered in your name I believe. That's why I was hoping to finish the paperwork once the vehicle was in route.

Bottom line, and hopefully everyone else made it clear without being harsh about it, is you have it right and wrong . If you COMPLETE the purchase process before 2023 you qualify. BUT, no dealer can finish the sales process without the vehicle in their possession.

I can't imagine any dealer taking the chance of completing a purchase without possession of the vehicle because it might break some law and it would open them up to weird liabilities. What if the car carrier crashed on the way to deliver your already purchased vehicle?

Let's hope you get your truck in time, but there is no way around the fact that a lot of people will fall into 2023 just by luck of the draw.

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