How Exactly Will The Tax Credit Work

[thankyouOB]

Jason
What do you think of chances that republicans will cancel EV credit before then end of this year? If it happens I will be broke.


The desire of Gopers to do that is 100%, but their ability to do it while controlling only the HOUSE is zero.
that's why I am called thankyouOB.
as to having enough tax to qualify. If you have an IRA and have 100k in it, you can convert enough of it to a ROTH to qualify, regardless of other income.
The calculations will vary but the best way to do it is to over convert, and you can convert the excess back without penalty.

[EVDRIVER]

What do you think of chances that republicans will cancel EV credit before then end of this year? If it happens I will be broke.

If you buy the car and the credit is in place and it is canceled after that you will still be able to claim the credit, even if cancelled it would likely still apply for all of 2011.

[derkraut]

Jason
What do you think of chances that republicans will cancel EV credit before then end of this year? If it happens I will be broke.

that's why I am called thankyouOB.
The desire of Gopers to do that is 100%, but their ability to do it while controlling only the HOUSE is zero.

as to having enough tax to qualify. If you have an IRA and have 100k in it, you can convert enough of it to a ROTH to qualify, regardless of other income.
The calculations will vary but the best way to do it is to over convert, and you can convert the excess back without penalty.

What is "Gopers"?

[thankyouOB]

Grand Old Party, sometimes abreviated as GOPers or Goopers.

[jason98]

What do you think of chances that republicans will cancel EV credit before then end of this year? If it happens I will be broke.

If you buy the car and the credit is in place and it is canceled after that you will still be able to claim the credit

Would be nice... Do you have any reference confirming that?

[thankyouOB]

Jason,
your alternative is to lease it and buy out the lease right away. that has been discussed on this forum, and my dealer confirmed that I could do that. It will cost you about $500 for various charges, but you save the 7k, as the tax credit goes to the dealer and you dont need to have the 7500 tax liability, either.

No one will be able to confirm that for you as Congress can rewrite tax law back and make it retroactive. but the odds of the Senate and the President, especially, deciding to agree with the GOPers and revoke the tax act are as close to non-existent as anything in politics.

[jason98]

Jason,
It will cost you about $500 for various charges, but you save the 7k, as the tax credit goes to the dealer and you dont need to have the 7500 tax liability, either.

Interesting. What about 5k from CA's CVRP fund? Am I still able to claim it if I lease?

[LEAFer]

Interesting. What about 5k from CA's CVRP fund? Am I still able to claim it if I lease?

Yes. Minimum lease term is 36 months, and you need to register the car in CA for those minimum three years.

[planet4ever]

Yes, you can apply for a CVRP rebate when you lease, but ...

1. It is now only $2,500, not $5,000.
2. The 2011-2012 FY funds may be exhausted by the time you get your car, so you may get put on a waiting list until fall of 2012.
3. And, no, you cannot apply before you actually get the car.

These restrictions apply to everyone, not just those who lease.

Ray

[halhoyt]

We bought our LEAF in July, 2011. We applied for the tax credit of $7,500 by using IRS form 8936 with our 2011 income taxes. IRS disallowed the credit because we 'did not provided (sic) documentation to establish the criteria.' I called IRS and asked what I should provide as documentation. The agent looked up my file and could offer no suggestion. So I sent them another copy of the 8936, copies of the page in IRC 30D that lists the 2011 and 2012 Nissan Leafs as qualified plug-in Electric Drive motor vehicles, a copy of the bill of sale with the local Nissan dealer, a copy of the application for title and registration with the State of Tennessee, and a copy of the title. After 2 1/2 months of review they are still disallowing the credit. This time they are asking for a copy of 'the domestic distributor's certification if a foreign manufacturer and a copy of document to verify vehicle was placed in service.' The local Nissan salesman has no idea what that is. He's called higher up and I hope to talk with someone at Nissan today about it.

IRS is being heavy handed about it. They are assessing us for the $7500 tax credit, a $1500 (20%) penalty for underreporting our taxes owed by $7500, and interest to date from April 15, 2012.

Has anyone else had this problem? If so, how did you resolve it?