Intentionally pushing the tax credit, old fashioned way?

[1375mlm]

Currently In the last few steps of finalizing a Lightning, for which there’s 0% APR being offered.
As a result, we decided to not push the 7500 tax credit into the loan/lower the price of the car, but instead delay it until tax time to get that cash upfront. Obviously this increases the loan amount, but as the APR is low, we’d rather have the cash now.
Looking at the IRS website, they state the following:
“Seller must give you a time-of-sale report and a copy of the confirmation the IRS provides when it accepts the time-of-sale report submitted through IRS ECO”

But no information as to what these look like, what qualifies as these docs, or any other details.
Has anyone done this before? Any tips?
Thanks!

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[TaxmanHog]

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

https://www.irs.gov/credits-deductions/how-to-claim-a-clean-vehicle-tax-credit


https://www.irs.gov/pub/newsroom/form-15400-sample-new.pdf

 

[astrand1]

I’m no tax attorney but if you’re not taking the point of sale credit then it just rolls into a tax credit and if you don’t have enough outstanding tax liabilities (tax owed) then you might not get all of the money. I got 0% for 72 on my lightning but even though it’s free money I chose to just take the POS money. I did not want any issues down the line. I do know for the way I did it no paperwork is required for me. In your case I would assume you need something. Especially with the new admin coming in I would make double sure that you are going to get the full $7500 back when you do your taxes otherwise might be safer and easier to just let the come off your loan now and just enjoy the lower payment. Either way good luck and congrats on the truck. I’ve had mine now for 4 months and you could not pry it out of my cold dead hands! I love it.

 

[TaxmanHog]

The ~NEW~ administration can't change tax LAW on the fly, it requires action in congress to repeal or modify existing law

 

[1375mlm]

I’m no tax attorney but if you’re not taking the point of sale credit then it just rolls into a tax credit and if you don’t have enough outstanding tax liabilities (tax owed) then you might not get all of the money. I got 0% for 72 on my lightning but even though it’s free money I chose to just take the POS money. I did not want any issues down the line. I do know for the way I did it no paperwork is required for me. In your case I would assume you need something. Especially with the new admin coming in I would make double sure that you are going to get the full $7500 back when you do your taxes otherwise might be safer and easier to just let the come off your loan now and just enjoy the lower payment. Either way good luck and congrats on the truck. I’ve had mine now for 4 months and you could not pry it out of my cold dead hands! I love it.

One of the best vehicle purchases I’ve made by far!
Agreed, not sure if the hassle is worth it. Unfortunately I may have already dug the hole too deep to escape, this may just be the route I take. So trying to make sure I don’t goof up!

 

[astrand1]

One of the best vehicle purchases I’ve made by far!
Agreed, not sure if the hassle is worth it. Unfortunately I may have already dug the hole too deep to escape, this may just be the route I take. So trying to make sure I don’t goof up!

Well I’d say if you have not signed papers, taken delivery and the dealer can do POS make them do it! This is your money. Hopefully everything works out for you. Happy new year!

 

[Scorpio3d]

Currently In the last few steps of finalizing a Lightning, for which there’s 0% APR being offered.
As a result, we decided to not push the 7500 tax credit into the loan/lower the price of the car, but instead delay it until tax time to get that cash upfront. Obviously this increases the loan amount, but as the APR is low, we’d rather have the cash now.
Looking at the IRS website, they state the following:
“Seller must give you a time-of-sale report and a copy of the confirmation the IRS provides when it accepts the time-of-sale report submitted through IRS ECO”

But no information as to what these look like, what qualifies as these docs, or any other details.
Has anyone done this before? Any tips?
Thanks!

You don’t actually receive anything from a tax credit It only lowers your tax liability by whatever the amount is in this case $7500. So it only reduces the amount of taxes that you owe by $7500.

 

[astrand1]

The ~NEW~ administration can't change tax LAW on the fly, it requires action in congress to repeal or modify existing law

Oh I know. That will take time but also who knows what may go on. I’m just looking at better safe than sorry.

 

[astrand1]

You don’t actually receive anything from a tax credit It only lowers your tax liability by whatever the amount is in this case $7500. So it only reduces the amount of taxes that you owe by $7500.

That’s what I was thinking. Now on the other hand if he has that much liability then financing the extra $7500 would effectively be a 0% loan of that $7500.

 

[TaxmanHog]

Oh I know. That will take time but also who knows what may go on. I’m just looking at better safe than sorry.

NO ONE,, including the present CONGRESS in their right mind will short circuit present law that is functional for another 25 hours, GET REAL, not fear.

 

[Scorpio3d]

That’s what I was thinking. Now on the other hand if he has that much liability then financing the extra $7500 would effectively be a 0% loan of that $7500.

The opposite is true as well if you are getting back more than $7500 when you file your taxes, then you have given the government a loan at 0% interest!

 

[TaxmanHog]

Regarding {LIABILITY} make sure your line 16 is equal to or more than $7500, if that's the case (no need to give us real numbers), then you'll feel the positive value of the tax credit, pay attention to the note on line 22, this is a NON REFUNDABLE credit, that is it can only reduce your income taxes, but NOT self employment taxes and other taxes located on line 23.

This graphic shows how a person with low income tax liability loses out.

 

[1375mlm]

That’s what I was thinking. Now on the other hand if he has that much liability then financing the extra $7500 would effectively be a 0% loan of that $7500.

My thoughts exactly. I do have that much liability, hence the idea to get things pushed through this way.

Regarding {LIABILITY} make sure your line 16 is equal to or more than $7500, if that's the case (no need to give us real numbers), then you'll feel the positive value of the tax credit, pay attention to the note on line 22, this is a NON REFUNDABLE credit

You’re absolutely right, and I 100% appreciate the thoughtfulness in your reply. My taxes owed in that line are around ~8k.

I am just a little nervous that I don’t have sufficient documentation to prove the credit.
I’ve claimed the credit successfully before, but the “new” guidelines seem to say that both the dealer and I need to submit. The dealer (my sales rep and finance guy) insist the dealer has/will submit it to the IRS. But nothing on the docs they provided to me confirms that they did…

 

[mrau]

The dealer (my sales rep and finance guy) insist the dealer has/will submit it to the IRS. But nothing on the docs they provided to me confirms that they did…

Dealer should provide you with Form 15400 -Clean Vehicle Seller Report. Should be 2 pages. It gives info on vehicle and if you took Credit Transfer at time of sale or not.

You need that form to claim the credit.

Sample below.

 

[1375mlm]

Dealer should provide you with Form 15400 -Clean Vehicle Seller Report. Should be 2 pages. It gives info on vehicle and if you took Credit Transfer at time of sale or not.

You need that form to claim the credit.

GOD SEND. Thank you!!

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