I have received the paperwork for a Kia EV6 purchase I made in NY with a help of broker here before Biden signing the IRA. The car was still in transport, arrived on August 29, this date is all over the NY paperwork, the only sooner date there is “date of purchase 8/12”. “Date of sale” is Aug 29, the day it arrived at the dealer.
Zelle fee to broker 8/15 stating the purpose
Credit card down payment was charged 8/16 (but given the day before)
Wire was on 8/16
Biden signed 8/16
I think the agreement here is that the last day for tax deduction eligibility is 8/15.
Am I safe for the deduction with the “date of purchase 8/12”?
Do you have a contract with the dealership that says that your deposit is nonrefundable and a binding contract requiring you to purchase the EV6, dated before the bill was signed?
I checked my docs and I have 8/13 (by HelloSign) signed authorization to charge the credit card with the deposit and signed “purchase order” with the VIN. So I feel I am OK.
English is not my first language, but aren’t sale /purchase the same words for different sides of the same transaction. How and why is the date of sale and purchase different?
I don’t know how IRS will do this, my absolutely uneducated assumption is that when filing taxes, the form will ask did you purchase vehicle before 8/15, and you can only take the credit if you say yes. BUt I am not a CPA.
In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions.
I am not up to date on NY law, in CA this is tricky because (by law) deposits for cars are fully refundable, so a “non-refundable deposit” may not be enforceable.
If OP’s EV6 was $60k, and they put at least $3k down (plus broker fee paid to broker, not less broker fee), and they has a signed order to buy the car with a VIN stating it was non-refundable, and NY allowed that, maybe?
The question here for OP is: obviously if you can claim the old tax credit, take it. But if you can’t, because it won’t be crystal clear in the next couple weeks, do you still want this car at this price?
