Write offs are subject to the state and local (SALT) cap. For many, you either exceed the cap limiting the benefit. I or else the standard deduction exceeds your itemised deductions making the deduction moot.
1 Like
All I can say is get a better accountant. If you are exceeding your write offs at the state or federal limit, you should incorporate. Best decision I ever made.
1 Like
Weāll, As you know youāll pay for the extra corporate tax return and the corporate annual report. The corporation will need itās own bank account. The fees for such may exceed DMV write-off advantages.
There are some advantages to incorporation, but DMV write-offs alone wonāt make it worthwhile.
Also what are you incorporating, a fake business? Need an actual business with at least intent to make money.
If I lived in CA, NY or NJ, Iād be pretty salty about the tax cut. The SALT deduction was specifically meant to screw those people. You get far less benefit than other citizens. Iām from VA which is a moderate tax state but Iām a little sad about losing the deduction of my annual car tax although recognize Iām still coming out ahead.
3 Likes
The late fees will make $400 sound like a walk in the park and youāll almost certainly wind up paying them. Drive an unregistered car from November till May? Bad idea. Get some Bad Idea Jeans.
Look at the road maintenance (TIF) fee:
https://www.dmv.ca.gov/portal/dmv/detail/pubs/newsrel/2017/2017_94
So you guys did not complain when you got the 2500 EV CARB rebate but you complain when the 400 reg is up for renewal? Where do you think the 2500 comes from - thin air, money tree, OPM?
7 Likes
400? Stop complaining. Jesus. You got a rebate from the state and want to complain about them letting you drive?
1 Like
Are you an actual doctor with an office, etc? Obviously, incorporation is great, thenā¦ For use lowly plebes who only have desk jobs, not really an option, AFAIK. Mind you, I quite like my desk job, it pays well enough that Iām not complaining, etcā¦ But, I will be hitting the SALT limits this year. And wouldnāt mind a LEGAL way around it. Not going to go into untested waters for a few $kā¦
(sorry for the off-topic post).
I just paid $652 for my renewal here in Cali
I will be in a similar situation next year. My registration will be up for renewal by May and lease will be due on October ( 30 month i3 in California). I got my CVRP rebate. I have been commuting with it on carpool since I got it and at this pace I will be about 5k over miles by October OR I can give it to my wife for her 2 mile commute and ride until the end of lease. What I am considering to do is to keep driving and use up all miles by the registration renewal, file for non-op and park until the lease end. This way, I will be keeping it for the full 30 months, save on full registration fees ( perhaps drop from the insurance too?) and at the same time not risk CVRP. Sounds like a good plan?
1 Like
Just turn it in and pay the monthsā¦ Unless that affects your Cvrp rebate. Youāll still have to carry full coverage insurance while the car sits, donāt forget.
CVRP chargebacks seems to be hit and miss. If I call CVRP, they will most likely read from script and say I have to keep the car but I will tryā¦ Last thing I want is to have to pay back %25 of the CVRP rebate, maybe I will just pass the car to my wife and manage the miles. That leaves me with a gas hog SUV with no access to carpool lane which is not funā¦ I wish GLC electrics were cheap. Wife doesnt budge from SUV and GLC is the only electric SUV other than Teslaā¦
BMW allows you to prepay miles if you think youāll go over. Itās not as much of a discount as it used to be anymore (I think itās .20/mi now) but better than .25/mile when you ground it.
yeah I thought about that , i can purchase miles for 23 cents / mile. Certainly more expensive than driving the (owned) SUV but at least it has carpool lane access. I need to do more research on the other plan, that seems to be the best option financially especially if I can drop the insurance. I made a quick google search on it, some says I can some I cannot. Need to call BMWFS and ask.
Iād be shocked if you could drop insurance. Itās in the contact BMW wants you to have full coverage for the term of the lease to protect their car. You still run the risk of theft, arson, vandalism, spontaneous fire, whatever. Theyāre not going to care you plan on parking it.
UsedToyota RAV4 EV is also an option. Or a Model X.
https://www.cargurus.com/Cars/t-Used-Toyota-RAV4-EV-t47057#listing=213421530
Logically, they should only care about comprehensive. Insurance cost of a parked car will probably be similar to the portion of the CVRP rebate if I have to give it back.
Anyone knows what CVRP does for early lease returns?
@WBL - RAV4 wont work for my commute ( 100 miles RT) . Also wont work with the baby and all of her gearā¦
You can pay pro-rated registration fee in our state. I am not sure about CA. However, i went to our local dmv and told then I just want to register for 3 months and they did prorate the cost for me.
Cali wants every penny possible.
Logically, yes. Contractually, no.