Owe 6500 in taxes. EV for the rescue? PHEV?

Ask the Hackrs Buy/Finance
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Hello All,

Ive been working overseas for the past two years and I didn’t know you have to pay taxes while you’re in another country so I Just filed for the past 3 years and now I owe $6500 rather than paying that I was thinking of leasing or buying an EV to get that tax Credit because I just simply can’t pay the 6500 at the moment.

Are there any dealers that have 0 drive off AND will not use the 7500 towards the lease deal?

I was looking at the Toyota bz4x they have a 0 drive off deal at only 189 a month for a 2023 or 219 for a 2024.

So should I buy a used Tesla or whatever for less than 25k so I can get 4k tax credit (not POS credit) and pay 2500 out of pocket?
Buy a new EV and get 7500 off? even though the depreciation on EVs is massive??

Also how long do you have to keep the car for? If I already filed my taxes do I do an amendment? Or just hold off till next year?

ANY AND ALL SUGGESTIONS ARE WELCOME. THANK YOU!!!

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So let me get this straight, to avoid paying $6500 on your IRS taxes you plan to buy a car (Not Lease) as it would allow you to deduct $7500 on your taxes.

  1. You can’t file the $7500 until next year
  2. A Lease doesn’t use the IRS rules so that doesn’t help you.
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Talk to a tax pro, not a car-shopping public.

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ooh this’ll be a fun one

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Thanks for the clarification.
I wasn’t sure if credits were just on buying since they mention the 7500 credit in the fine print on lease but forced into cap costs… I thought maybe negotiable.

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Tax guy wouldn’t know the ins and outs about lease deals so I figured the lease pros would know.

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Always

The IRS will setup a payment plan. You don’t have to write a check. And yes you can always amend but doesn’t always make sense. See :point_up_2:t2::point_up_2:t2:

If you have $6500 in tax liability you can offset that using a section 30 purchase, it’s a very short list of phevs and a short list of evs

There is a decent list of used for the smaller $4k credit

You can structure a deal however you want, but start by deleting Toyota from the solution set.

You managed to tag most of the original 13 colonies: which state or Commonwealth will you be buying this car?

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No, it’s the opposite. Generally, leases are not subject to any “end-user” tax credits. Lease (lease backend-end financial) companies have different provisions on how they claim 7.5k from government, it has nothing do to with your tax liability.

Never the two ever mix, and if you expect to decrease liability via lease - I think it’s a mistake. :slight_smile:

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Assuming you used a tax professional/software to file and got offsets for any foreign taxes paid?

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Thank you for the resources and information provided I really appreciate it!!!

I am in DE but because everything is so close to me I don’t mind the drive I live within 2.5 hours of NYC, VA, PA, MD, NJ, CT, DC

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Yes I used a CPA.

I was teaching in UAE no income tax so no taxes were paid…Only the USA and 2 other countries force you to pay taxes to your home country as well. My British and EU counter parts were enjoying ZERO taxes to home country and host country.

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thank you for your input.

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Didn’t this change since January 1st?
You do not file this at all now. The $7500 is now POS rebate applied by the dealer ( but You make sure you qualify for that rebate) . Am I missing anything?

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you have the choice. OP is looking to minimize their taxes so filing it yourself is the way to go.

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Not sure what is the advantage to wait another year to get that $7500 :thinking:

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I think in order to get a credit you need to have 7500 liability in the year of purchase. I doubt it applies to amount owed to IRS already.

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As I said, he’s owes $7500 and is trying to figure out how to ‘deduct it’

An POS payment doesn’t help him.

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You do not get a tax credit if you lease and a tax credit on a purchase would either be point of sale or claimed on your taxes when you file in a year.

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This seems like a great way to make your problem worse. Set up a payment plan with the IRS, they aren’t going to nail you to the wall over $6500.

Also, you really need to plan your finances better if you don’t have a fairly liquid $6500 after working abroad for three years.

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I hope the next question isn’t “Can a dealer backdate a purchase to 12/31/23?”

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