Federal tax rebate for the Leaf

[boba]

My Leaf was purchased last October (I Love it!). Just started working on my income tax for 2014 and need the proper form for the rebate. What is the number?

Bob

 

[silentbutnotdeadly]

My Leaf was purchased last October (I Love it!). Just started working on my income tax for 2014 and need the proper form for the rebate. What is the number?

Bob

I believe this is the form:

http://www.irs.gov/pub/irs-pdf/f8936.pdf" onclick="window.open(this.href);return false;

Disclaimer: I am not a tax professional. I am a dry cleaner. Trust me.

Mike

 

[GlennD]

The federal $7500 is not a rebate. You must have over $7500 in taxes to use it fully. That is the advantage of leasing. Nissan gives you the $7500 and then takes it off of their taxes.

 

[nerys]

correct. unless you made $60k last year your not getting it.

"IF" I were to try and get one my credit would have been $400.

 

[tkdbrusco]

Thanks for the form as well. I bought mine in August. Wife and I should qualify no problem, otherwise I would have leased as well.

 

[boba]

I believe this is the form:
http://www.irs.gov/pub/irs-pdf/f8936.pdf" onclick="window.open(this.href);return false;
Disclaimer: I am not a tax professional. I am a dry cleaner. Trust me.
Mike
***********************************************************************************
Sorry Mike, it does look like the correct form. I wrote without looking more closely. Many
thanks for the information.

Bob

 

[leafo]

I am also applying for this credit. Based on what I found online, it seems some people had problem due to IRS trying to use AMT on their tax filing and then reducing the rebate amount. I have never paid AMT before and just checked with taxact and I don't need AMT for this year also. But, to be on the safe side, I'm thinking about attaching a filled out 6251 along with my tax and taxact does allow submitting 6251 even though nothing is owed. BTW, the instructions for 6251 mention that it should be filled when claiming an electric vehicle credit.

Is there anything else I should be careful about?

Thanks!

 

[RonDawg]

I am also applying for this credit. Based on what I found online, it seems some people had problem due to IRS trying to use AMT on their tax filing and then reducing the rebate amount. I have never paid AMT before and just checked with taxact and I don't need AMT for this year also. But, to be on the safe side, I'm thinking about attaching a filled out 6251 along with my tax and taxact does allow submitting 6251 even though nothing is owed. BTW, the instructions for 6251 mention that it should be filled when claiming an electric vehicle credit.

Is there anything else I should be careful about?

Thanks!

I am also not a tax professional but it's been often said here that trying to take both the EV purchase credit and the EVSE purchase/installation credit (extended again for tax year 2014) will cause you to run into the AMT.

 

[Valdemar]

I thought it was that if you're paying AMT you can't get the EVSE credit, not that you'll be subject to AMT when taking the credit.

 

[forummm]

Damn, I didn't know the EVSE credit had been extended. I didn't see any posts on that here. I did not include it on my return.

 

[forummm]

I started looking into the AMT. I already filed, and I always ignore the AMT because I've never been anywhere in the range where it would be an issue. I didn't know that it was needed for people claiming the EV credit. I bought 2 Leafs this year. After quickly looking at the numbers, I started to panic because it looked like I could potentially lose one of the 2 credits. But then I saw another post and a related IRS Q&A and it appears as though if you wouldn't already hit the AMT, then the EV credit itself won't cause you to hit the AMT. Or at least that's my interpretation at this time. I hope that's correct.

I might even be able to get the credit for the charging station install as well and not have AMT issues.

http://www.mynissanleaf.com/viewtopic.php?f=12&t=6758" onclick="window.open(this.href);return false;
http://www.mynissanleaf.com/viewtopic.php?f=4&t=8596" onclick="window.open(this.href);return false;
http://www.mynissanleaf.com/viewtopic.php?f=23&t=16255" onclick="window.open(this.href);return false;
http://www.irs.gov/uac/Energy-Incentives-for-Individuals:-Questions-and-Answers" onclick="window.open(this.href);return false;

 

[tkdbrusco]

it says on the IRS website that the $7500 EV credit can be used toward AMT, so if you are in AMT territory and pay enough in taxes, you can still take it. It looks like applying for the credit triggers a AMT calculation though. I seriously doubt all these Teslas would have been sold if people couldn't take the credit. I will be filing in a month or so and trying to take the credit. I am likely going to be in AMT territory this year :-( but that is not because of the Leaf purchase.

Taxes are way more complicated than they need to be. This is all a bunch of BS. I'm a middle school teacher and my wife works in marketing. By Bay Area standards we are not rich, but I feel like I need both a CPA and a financial advisor to navigate my tax returns and investment strategies. Why should things be this complicated?

 

[nerys]

because taxes are their to take from you not help you

this is why they are complicated. honestly no joke no sarcasm. fact.

 

[forummm]

because taxes are their to take from you not help you

this is why they are complicated. honestly no joke no sarcasm. fact.

I think a more realistic answer is that the tax code is complicated because 1) it can be difficult to change things even when they have unintended consequences and 2) many special interests benefit from certain things being very complicated, and 3) sometimes things get complicated when you have 536 (including the administration) people potentially putting things into large bills that get passed and then are added to existing laws.

The AMT was originally intended to just ensure that very rich individuals were actually paying taxes and not using loopholes to get out of paying very much (as many of the rich still do to this day--mostly legally due to the structure of the tax laws). But it wasn't originally indexed for inflation, and so started to reach the middle income. As more and more people became subject to the tax, the cost to remove/amend it increased (any fix would cause less revenue to be collected, thereby increasing the deficit), so it became harder and harder to return it to its original purpose.

 

[tkdbrusco]

because taxes are their to take from you not help you

this is why they are complicated. honestly no joke no sarcasm. fact.

I think a more realistic answer is that the tax code is complicated because 1) it can be difficult to change things even when they have unintended consequences and 2) many special interests benefit from certain things being very complicated, and 3) sometimes things get complicated when you have 536 (including the administration) people potentially putting things into large bills that get passed and then are added to existing laws.

The AMT was originally intended to just ensure that very rich individuals were actually paying taxes and not using loopholes to get out of paying very much (as many of the rich still do to this day--mostly legally due to the structure of the tax laws). But it wasn't originally indexed for inflation, and so started to reach the middle income. As more and more people became subject to the tax, the cost to remove/amend it increased (any fix would cause less revenue to be collected, thereby increasing the deficit), so it became harder and harder to return it to its original purpose.

Well we aren't "very rich" We both have normal bay area jobs, have a normal 3 bedroom 2.5 bath house. Normal write offs for mortgage, taxes, etc... and we still run into AMT. Sounds to me like this targets the middle class, not the rich. I am inches away from getting the hell out of this ridiculous state. It's just absurd how much we pay in taxes in CA.

 

[tkdbrusco]

You guys wanna know why I bought a Leaf. It wasn't so much for the environmental benefits, because to be honest, I'm not sure they even add up. We are burning fossil fuels to create the electricity, and I bet the life of the car (and battery) is less than half of a normal ICE car. And not to mention how much does it cost to make the battery, and mine for the metals for it, etc...

I bought the car because between the $7500 federal tax credit and the state $2500 rebate, combined with all of the other discounts and offers, I could drive a car nearly for free. And also get back about $10,000 in my hard earned tax dollars that I gave to a state and federal government that just wastes my money. Why shouldn't I get some back.

 

[Nhinman]

You guys wanna know why I bought a Leaf. It wasn't so much for the environmental benefits, because to be honest, I'm not sure they even add up. We are burning fossil fuels to create the electricity, and I bet the life of the car (and battery) is less than half of a normal ICE car. And not to mention how much does it cost to make the battery, and mine for the metals for it, etc...

I bought the car because between the $7500 federal tax credit and the state $2500 rebate, combined with all of the other discounts and offers, I could drive a car nearly for free. And also get back about $10,000 in my hard earned tax dollars that I gave to a state and federal government that just wastes my money. Why shouldn't I get some back.

Very similar to my situation. I did a couple of things that made my tax liability larger than normal for 2014, so I figured what the heck, I want some of it back. $7500 Federal tax credit, $2500 state rebate, and Nissan paid me $3500 to take a 0% loan. I didn't really want the loan, but if someone is going to pay me to take their money at no interest, I will.

I have a 2007 Frontier PU that I love and don't want to part with, but it's starting to get a lot of miles on it. I got the Leaf to do my local work commute and errands.

 

[evboy]

You guys wanna know why I bought a Leaf. It wasn't so much for the environmental benefits, because to be honest, I'm not sure they even add up. We are burning fossil fuels to create the electricity, and I bet the life of the car (and battery) is less than half of a normal ICE car. And not to mention how much does it cost to make the battery, and mine for the metals for it, etc...

I bought the car because between the $7500 federal tax credit and the state $2500 rebate, combined with all of the other discounts and offers, I could drive a car nearly for free. And also get back about $10,000 in my hard earned tax dollars that I gave to a state and federal government that just wastes my money. Why shouldn't I get some back.

Very similar to my situation. I did a couple of things that made my tax liability larger than normal for 2014, so I figured what the heck, I want some of it back. $7500 Federal tax credit, $2500 state rebate, and Nissan paid me $3500 to take a 0% loan. I didn't really want the loan, but if someone is going to pay me to take their money at no interest, I will.

I have a 2007 Frontier PU that I love and don't want to part with, but it's starting to get a lot of miles on it. I got the Leaf to do my local work commute and errands.

i understand your reasoning but after all the research i have now done on used vs new, i think all this money everyone thinks they are getting back in their hard earned tax dollars isnt really true. You can buy a 2015 used leaf for under 20k. the minute you drive the new one off the lot all those tax incentives are deducted from the msrp. i personally dont qualify for 10k off in incentives so its a real boom for me to buy used, but even if you qualify for the full 10k in cali, you also pay more in sales tax because its based on the selling price not the after incentive price.

here is a 2015 leaf S with under 2k miles for 18,xxx. it already went down about 12k from the msrp when you count the destination charge. you can probably get it for 17 and change if you negotiate. so lets compare. 30k new after 7500 2500 3500 =13500 deductions. thats 16500. add 1k for sales tax on the extra 12k you will pay for new compared to used and you get 17500. sure, you come out a little ahead compared to the used one in the link, but only if you get the extra 3500 from nissan. without that you are better off buying used. here is the link http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=89169&endYear=2015&modelCode1=LEAF&sortBy=derivedpriceASC&showcaseOwnerId=48754694&startYear=2015&makeCode1=NISSAN&listingType=used&listingTypes=used%2Ccertified&searchRadius=0&mmt=%5BNISSAN%5BLEAF%5B%5D%5D%5B%5D%5D&listingId=391817594&Log=0" onclick="window.open(this.href);return false;

also, i dont have to deal with all the paperwork and tax bs. in closing, the real deal is to buy a used 2012 sl. it comes standard with the qc, you save on registration fees, and no sales tax if you buy private, also, you get a new 2015 battery if you can degrade it enough in a couple years. i call that a win win win. I just need to find one that is closer to me and not have to pay 900 bucks to ship it. if oil can hit 35 bucks, i might be able to get a 2015 used for 15k. now thats a deal.

 

[KillaWhat]

Given a level playing field, who would buy used over new?

I got $10,500 between the State and Fed Tax Credit.

It was no hassle.
Couple of photocopies and a 10 line tax form.

New for the same cost as used........ but NEW!

No Brainer.

Don't e-file; Paper File.
Send them a copy of the BOS, Registration, Source of funds, etc.
Credit sailed through with no problems.

 

[tkdbrusco]

Given a level playing field, who would buy used over new?

I got $10,500 between the State and Fed Tax Credit.

It was no hassle.
Couple of photocopies and a 10 line tax form.

New for the same cost as used........ but NEW!

No Brainer.

Don't e-file; Paper File.
Send them a copy of the BOS, Registration, Source of funds, etc.
Credit sailed through with no problems.

Combine that with the fact that in some situations you can write off your total sales tax for the year (if its higher than your state income tax) A new purchase makes this much easier. The people who would buy used would be people who don't pay enough in taxes to offset the tax credit.