You could literally buy 1 a month and sell it, though that might trigger some audit flags. (Resale rule)
As long as it is registered in your name (And as a new car not a used) then you qualify.
Just remember Leases don’t count.
Im talking about purchase specifically…
There is no limitation for how long you have to hold a purchased vehicle. You simply cant buy with the intent to resell.
Reminds me of my religious values. Everything depends on intent.
Since the fed isn’t God, how are they judging intent?
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You don’t want to be trying to get an appointment with the IRS because you got one of those ‘notices’ and trying to explain to them that they aren’t God…lol
Ok, so I get a notice. They claim they can’t validate my intent. I pay the credit back? Is there gonna be a fine?
Im trying to calculate a expected value, if you sell before getting the credit.
Case A: 95% chance you don’t get audited, you get the credit, => 0.95 * 7500 = 7125
Case B: 5% chance you get audited, you refund the credit and pay a fine, say $2500. => 0.05*-2500= -125.
Expected value = A+ B = 7125 - 125 = $7,000.
What am I missing?
This is game theory 101…
I don’t speculate on
- Horses
- Baseball Games
- IRS audits
So good luck…but yes you can buy as many cars as you want.
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Fair enought but in my opinion, it is one of the poorest written laws. Like even CA when giving the rebate says that car must be registered in CA under your name for 30 months or so etc
Actual tax owed, penalties and interest beginning from when it was due.
These posts where you’re trying to game the risk/reward are potentially evidence you intended to flip. How many times are you going be told (publicly and privately) to speak with a CPA before you actually do it?
All the laws are poorly written, it’s how the IRS publishes the lay interpretation. If you think vague is bad, can I recommend the giant flowchat to determine if your continuing education is deductible or not? I’ve spent more money with my CPA on that that anything else over the years.
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lol. This isn’t about gaming the system at all. I always thought you had to own the car until you can claim the credit but people are telling here otherwise
But yes, this week its on the cards.
Personally, I’d rather give my reservation to someone (don’t care about making money off it either) but since Ford isn’t allowing that, Im more inclined to not pick up my second Mach-E
Yes Im very familiar with that. Tried deducting my MBA a few years back, before the Trump tax laws took that away on the federal level
You have to complete the purchase to be eligible, that’s it. You could drive it off the dealer lot onto a Carvana truck. But any other tax payor would obviously judge that a resale…
TIL. Didn’t realize that. Will definitely bring this up when I find a CPA. Also…
Wats up with LH trying to pretend to be social media…
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You wouldn’t have been able to write off an MBA before Jan 2017 because of the magical “opened you to new trades” phrase, the “not for resale” of its tax notice.
No doubt plenty of people did successfully and got away with it. But that’s one specific case that wasn’t allowed.
I filed taxes by hand 2012-14, so I read every IRS publication applicable to me, very familiar with the tax laws meeting my needs.
Prior to 2017, you can take education as a business expense if you aren’t planning to changing careers but only advancing careers.
Couple of my friends got letters for it (out of 250+ class), they had their boss send IRS a letter that this MBA is for advancement, and not changing, and that was the end of it.
You can still claim AFAIK on state level, but state laws vary drastically, so anyone reading this, definitely talk to your tax professional
It’s the wrong question to ask.
Captive banks will withhold the money when demand>supply for that particular model.
Otherwise they’ll throw their own at it like GM did with the Bolt a couple years back.
Or they might inflate the RV or subvert the MF.
Asking which captive shows a “$7,500 CCR” line item is the wrong question.
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Also, they do for some models and not for others (looking at you Kia/Hyundai)
Or you have Audi, which will pass the credit but the MF is so high,
I would like to see that
IRS Pub 970 / Figure 2-1