Battery mineral content requirement delayed to March.

[jimfigler]

I've seen post on social media and forums about how some say they plan on doing weird deals with a dealer prior to delivery or just outright claiming they took possession by 12/31 when they didn't. Just find it odd they post this out in the open where it could be used against them.

Sponsored

 

[Blainestang]

I've seen post on social media and forums about how some say they plan on doing weird deals with a dealer prior to delivery or just outright claiming they took possession by 12/31 when they didn't. Just find it odd they post this out in the open where it could be used against them.

Yeah, it's like people who say in advance they're planning to flip the truck, but still take the tax credit. Dangerous.

 

[Maxx]

Yeah, that's part of the reason I flew to go pick mine up instead of shipping it. That way, as soon as I drive it, it's definitely "in service", rather than risk some issue with shipping delays or whatever that result in me not getting it until after Jan 1, even if I've "owned" it for a few weeks.

Picked it up from factory? I didn't know that was an option.

 

[Blainestang]

Picked it up from factory? I didn't know that was an option.

I wish. No, I ordered from a dealer far away from my home for a number of reasons, but decided to go get it rather than ship it.

 

[cvalue13]

This is straight from the IRS website. Maybe I am not interpreting it correctly but I take it as the title is put in your name. Essentially the sale is done and the vehicle is meant for you and not for someone else.

That’s all tax filing cares about anyway I would think. When was the deal done and also that the vehicle is actually meant for you to use.

To clarify this back-and-forth:

In your initial post you said you may not take delivery until “next year,” but that the “question is “do [you] still try to sign papers / title” before then to which I responded only “signing papers isn’t enough”

You then next responded that title is all the IRS requires. Well, I can’t imagine a scenario where a person takes actual and sufficient “title” under state law before Jan. 1, but for some reason is unable (if they chose) to not also take possession of the vehicle. I don’t see dealerships, banks, etc., both signing over sufficient title while not also being able to perform delivery.

So beyond saying that signing papers isn’t enough for tax purposes, the only further point I intended to add is that for anyone *thinking* they are acquiring sufficient “title” in 2022 for a vehicle not available to them for delivery until 2023, they may be misunderstanding something about sufficient “title” or that otherwise warrants doing more than relying on online forum posts.

Anyone who has possession of the vehicle on or before Dec. 31st is almost surely fine (regardless perhaps of technical title conditions); whereas anyone who believes they are taking only “title” to the vehicle by COB DEC. 31st but for some reason is unable to also take possession by Dec. 31st should chat with a tax professional.

It’s one thing if before Dec. 31st you’ve (A) fully completed title (including your state submissions, insurance, etc.), and (B) the dealer has said you can come by and take delivery anytime, but your schedule just finds it inconvenient to pick it up yet.

It’s another thing if before Dec. 31st you’ve done something you think satisfies having title, but your dealer doesn’t have the vehicle yet or says you can’t take delivery yet for some other reason. It probably means you have neither sufficient title nor possession before Jan. 1 - which warrants looking into.

(The third middle-ground scenario mentioned by @TaxmanHog is a different matter: ie both not taking delivery of the vehicle by Dec 31 while also having only received but not yet submitted to state agencies any necessary title filings by Fri Dec 30th; that scenario seems precarious to me if only because it is a bit hard to prove up in the future - I, too, would be going out if my way to at least drive the truck home on Dec. 31st if I wasn’t able to file the title work until the following Tuesday.)

 

[cvalue13]

I've seen post on social media and forums about how some say they plan on doing weird deals with a dealer prior to delivery or just outright claiming they took possession by 12/31 when they didn't. Just find it odd they post this out in the open where it could be used against them.

basically why I pressed the point: the whole “sign a contract before the laws go into effect” debacle from a few months back appears to live on - including in the minds of dealership salespersons who are participating in these needle-threading schemes

Sponsored