Intentionally pushing the tax credit, old fashioned way?

[JMD359]

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.

I just bought mine last week and it doesn’t matter when you take the money you can take it at the point of sale. There will still be an adjustment made at tax time if there was an error or you don’t qualify for all of it it really doesn’t make a difference. It’s gonna be corrected either way you don’t get that money for free now if you take it nowthere will be a correction if there needs to be one so it really doesn’t matter you’re gonna get the same amount either way that’s what I was told by my accountant.

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[astrand1]

I just bought mine last week and it doesn’t matter when you take the money you can take it at the point of sale. There will still be an adjustment made at tax time if there was an error or you don’t qualify for all of it it really doesn’t make a difference. It’s gonna be corrected either way you don’t get that money for free now if you take it nowthere will be a correction if there needs to be one so it really doesn’t matter you’re gonna get the same amount either way that’s what I was told by my accountant.

interesting. Well if that’s the case then it sounds like this guy is fine either way. For me it was just too easy to have them just put that money on the truck even though I got 0% but everyone’s situation is different.

 

[Ventorum94]

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.

Who, with a taxable income greater or equal to the price of a new Lightning, does not pay at least $7500 annually in income taxes?? I can imagine very few examples.

 

[astrand1]

Who, with a taxable income greater or equal to the price of a new Lightning, does not pay at least $7500 annually in income taxes?? I can imagine very few examples.

Again this is not my area of expertise. But my understanding if you’re not itemizing and just taking the individual tax credit and you’re set up with the proper deductions on your pay you might not have that much outstanding. I always itemize but I get most years I get a fairly decent 1099 almong with a normal w2 so I need to itemize to help with the 1099.

 

[Maquis]

Who, with a taxable income greater or equal to the price of a new Lightning, does not pay at least $7500 annually in income taxes?? I can imagine very few examples.

Me!

 

[Ventorum94]

Again this is not my area of expertise. But my understanding if you’re not itemizing and just taking the individual tax credit and you’re set up with the proper deductions on your pay you might not have that much outstanding. I always itemize but I get most years I get a fairly decent 1099 almong with a normal w2 so I need to itemize to help with the 1099.

It’s not what’s “outstanding,” if by that you mean a check your write to IRS on 4/15. It’s your total tax liability for the year (line 24 on your 1040).

 

[TaxmanHog]

Who, with a taxable income greater or equal to the price of a new Lightning, does not pay at least $7500 annually in income taxes?? I can imagine very few examples.

All possibilities exist, I've seen 100's of thousands of tax returns in various iterations.

 

[TaxmanHog]

It’s your total tax liability for the year (line 24 on your 1040).

No, you can not include what (FOR SOME FOLKS) may be on line 23!!!!

 

[RocketGhost]

You don't actually need IRS Form 15400 to file with your taxes. But the dealer has to report the sale on an IRS portal within three days of purchase. The form is confirmation that they reported it.

If the dealer does not report the sale in three days the current official guidance from the IRS is that the vehicle is ineligible and you cannot claim the credit. I wouldn't be surprised if the IRS modifies that since a lot of people are going to be upset when their returns get rejected because the dealer didn't report.

 

[TaxmanHog]

90+% of taxpayers file electronically now, all source documents must be kept in your personal files for at least 3 years from the due date of return filing, hold them longer if you're the paranoid type.

 

[F150Flash]

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!

Don’t let your dealer off the hook on this. The dealer must report the sale to the IRS and give you the form as proof they fulfilled their responsibility. If they don’t, when you file your return the IRS will not be able to match your purchase and they will likely deny your credit.
I purchased my 23 Lariat at the end of March and I finally received the form from them in December. I hassled them the entire time. They were not aware of their responsibility at the time I purchased the truck.
Don’t let them off the hook.

 

[Danface]

I couldn't take the credit at the dealer because I got it just after the 1st of the this year and they were afraid that if I had tax liens that they wouldn't paid ... this is NOT the case but it was too early for them to know SO I paid 6.25% state sales tax on the $7,500 and the state won't rebate me the tax ... GRRRR

 

[RickLightning]

Owed <> Liability

 

[TaxmanHog]

I couldn't take the credit at the dealer because I got it just after the 1st of the this year and they were afraid that if I had tax liens that they wouldn't paid ... this is NOT the case but it was too early for them to know SO I paid 6.25% state sales tax on the $7,500 and the state won't rebate me the tax ... GRRRR

That was totally inappropriate, this tax credit is non-refundable, only refundable credits net remainder can be offset to IRS or external debts (Lien/Levy), hopefully they learned their lesson, could have lost your sale or others by not understanding the law.

 

[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.

Sample below.

Would you/anyone also know if this serves as enough “proof” that the seller also did submit the sale to the IRS?

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