Just leased an IONIQ5
My income qualifies for CVRP in 2021 tax filing but way outside of it in 2022 tax filing.
From what I’m gathering, for CVRP, they still go with the 2021 tax return?
As of June, they ask for the 2021, you ‘can’ submit the 2022 but it’s not required
Does anyone know if the CVAP limit of $45k is Before or After Taxes ?
These 2 requirements are confusing:
-
Subtotal of Purchase is less than or equal to $45,000
-
Gross Capitalized Cost (Including taxes, fees, service contract, etc) is less
than or equal to $45,000
This says after to me
So dont capitalize any fees or taxes?
In CA, the only taxes that could be capitalized would be taxes on any cap cost reduction or taxable fees. The bulk of the taxes are on the monthly payment anyway, which definitely aren’t part of the gross cap cost.
CVAP is closed AFAIK
Some people who applied back in June are just getting their Approval letter now.
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Another thought I had is,
When Leasing the “Gross Capitalized Cost” is after the $7500 Tax Credit, then that means the Limit is even higher than when Buying since the Tax credit is not part of the equation in the Subtotal amount.
Gross capitalized cost is before applied incentives. The adjuated capitalized cost is after.
OK, maybe I was thinking “Gross Capitalized Cost” does not include the Total Sales tax of the vehicle.
If that is correct, then Leasing a higher priced vehicle may apply for CVAP.
Gross Capitalized Cost is not really a fixed thing for a vehicle. It depends on what fees they capitalize in. It could include sales tax (at least on inceptions) or it could not, depending on how the dealer structures the deal.