My buying a 2012 Nissan Leaf experience

[ksnogas2112]

To follow on Chieftan68....you have to have the $7500 in tax liability to begin with but then to get money back you also have to have $7500 in withholding as well.

Example to illustrate and NOT to be taken as accurate:

#1 You make $100,000 in 2012. Your tax liability is $7500. Your withholding is $7500. You get it all back.
#2 You make $100k. Your liability is $7000. Your withholding is $7500, you get back $7500. <edit correction thanks FLboy>
#3 You make $100k. Your liability is $7500. Your withholding is $6000. You get back $6000 but don't have to pay remaining $1500 of tax liability due to tax credit.

They should really call it a mail-in rebate <laugh track> :lol: </laugh track>


Here's 2 cents and complimentary pick axe to poke holes.
<edit> Hole count now 1, remaining cents 1

 

[davewill]

... No Free Money (except in the state of California where you as a taxpayer are subsidizing EV ownership to the tune of between $2k-2.5k of free money--actual rebate check). But that gets us into the area of politics so let's leave that. ...

Like there would be any difference to the state budget between giving a tax break and giving a direct subsidy...except that structuring the tax credit the way the feds did assures that only the fairly well-to-do can take advantage of it.

But you're right, that's politics and is off-topic.

 

[FLBoy]

#2 You make $100k. Your liability is $7000. Your withholding is $7500, you get back $7000.

No, Your credit will be $7000, reducing your tax liability to zero. You have had $7500 withheld, and you will get all of that back.

The bottom line is that for any tax liability up to $7500 you can reduce your tax liability to zero and get back whatever amount (if any) was withheld. For a tax liability higher than $7500 you can reduce that tax liability by $7500. Then if your withholding exceeds the reduced tax liability, you will get back the difference.

 

[kmp647]

the way the $7,500 is handled is much to complicated and risky.

Nissan and other mfrs need to push to get the $7,500 handled at the delaership during a purchase...... not just when leasing

what really happens now is you buy and then file your taxes , the IRS mixes up the forms and you get audited

good luck, I am so glad I leased the car instead.

this needs to be an instant rebate at purchase the ways cash for clunkers was handled or something similar

 

[ztanos]

the way the $7,500 is handled is much to complicated and risky.

Nissan and other mfrs need to push to get the $7,500 handled at the delaership during a purchase...... not just when leasing

what really happens now is you buy and then file your taxes , the IRS mixes up the forms and you get audited

good luck, I am so glad I leased the car instead.

this needs to be an instant rebate at purchase the ways cash for clunkers was handled or something similar

I wish that it was this way for State as well. Ga has $5k back that is able to rollover, but It will take me 3 years to get the money back. I would much rather have that up-front.

 

[Herm]

the way the $7,500 is handled is much to complicated and risky.

A Federal tax credit involves a change in tax law, it does not need to be funded.. a federal tax rebate needs yearly funding and would be vulnerable to all the politicians, every single year.

The other advantage of a tax credit is that only people that pay taxes get to benefit.. freeloaders need not apply.

 

[EricBayArea]

I went to the Nissan dealer near my home in Sacramento, Ca to check out the Leaf with no intention of buying it. I felt the $35000 price tag was out of my reach and 'm not in a position to take advantage of the $7500 federal income tax credit, and finally, 17 hours to charge it doesn't work for me and I wasn't about to spend $2200 to put a 7 hour charging station in my garage. The limited driving range concerned me as well so I was ready to buy a Volt.

Congrats on the new car - i'm sure you'll love driving it. If the $35000 price tag was out of your reach then how were you considering a Volt - doesn't that start at $40000?

Also, you will see that the "7 hour charging" is never 7 hours. On a typical overnight charge, the car is charging for 2-4 hours. Unless you are at a Very Low Battery Warning and want to get back to 100%, then you'll see 7 hours - but that is very seldom to most drivers who charge at the 2 red bars and take it up to 80%.

 

[davewill]

... The other advantage of a tax credit is that only people that pay taxes get to benefit.. freeloaders need not apply.

That's right. Only rich people should get an electric vehicle incentive. :roll: :roll:

 

[GaslessInSeattle]

Actually, that tax credit is apparently misunderstood by our very own IRS in at least a few cases. it's turning out to be a real PITA to get our rebate. It's been 5 months since filing and not a single official piece of communication from the IRS and no refund of any kind... and every time we call, the story changes.

Can I ask why you said in OP that you were not eligible for the $7,500 tax credit? I ask because I checked with my tax accountant and he assured me that no matter what your income level is, you/I are eligible...

- Jon

This is one of the most misunderstood tax credits. The media doesn't help here either (do they on anything?).

It is a dollar-for dollar tax credit against the amount of taxes you pay to the Feds. If you don't pay $7,500 in taxes for the year that you purchase the Leaf, you only get to deduct up to the amount of taxes you did pay. I'm talking purchasing a Leaf outright, not leasing. Not familiar with leases but the person who started this thread got a super deal.

Sooooo, if you paid only $2k in taxes, you get to deduct $2k tax credit for the Leaf off that--no more. No Free Money (except in the state of California where you as a taxpayer are subsidizing EV ownership to the tune of between $2k-2.5k of free money--actual rebate check). But that gets us into the area of politics so let's leave that.

Your accountant better check that again. If you are a low income person, you are getting a tax credit equivalent to the taxes you paid--no more. For me, that meant going the pre-owned route as I don't earn enough to take real advantage of that program.

 

[Herm]

That's right. Only rich people should get an electric vehicle incentive. :roll: :roll:

are you saying only the rich pay taxes?.. careful with that or you will be accused of being a Fox listener

 

[davewill]

That's right. Only rich people should get an electric vehicle incentive. :roll: :roll:

are you saying only the rich pay taxes?.. careful with that or you will be accused of being a Fox listener

No, I'm saying only the well-to-do are likely to owe $7500 in taxes...or be able to afford to wait a year or more to receive their incentive.

But that seems just as it should be for you, I guess.

 

[ztanos]

That's right. Only rich people should get an electric vehicle incentive. :roll: :roll:

are you saying only the rich pay taxes?.. careful with that or you will be accused of being a Fox listener

I believe that was sarcasm... but... I am a full fledged tax-payer that won't receive my credit because I don't pay enough. Whereas Richie Rich who can actually afford the car without the credit will get more of it. I think that if they gave it to the Dealer like they do for the Lease, it would be easier and equal. My first time home buyer "credit" wasn't subject to my Liability. I got all of it, why can't this be the same way?

 

[Herm]

No, I'm saying only the well-to-do are likely to owe $7500 in taxes...or be able to afford to wait a year or more to receive their incentive.

Just put in a couple of extra deductions on your W2, and buy the Leaf when you file your return.. or if you cant handle that lease it and then pay it off. You dont have that option with the Volt.

I much prefer a tax credit, it lower taxes and stimulates the economy.. a straight rebate is just welfare and encourages people that should not be buying a new car to do so. Its tough love, Republican style.

 

[davewill]

...I much prefer a tax credit, it lower taxes and stimulates the economy.. a straight rebate is just welfare and encourages people that should not be buying a new car to do so. Its tough love, Republican style.

GAAAHHHHHH!!!!!! [Head explodes] There's absolutely NO difference between a tax credit and a rebate so far as economic stimulation and the deficit goes. Only a Republican would think so. As far as it being "welfare", you can either afford the car after the incentive or you can't. Insisting that people have to be able to afford it BEFORE the incentive is silly.

Edit: We've gone far enough off-topic. I won't pursue this any further.

 

[ksnogas2112]

Just call it a mail in rebate and be done with it.

:mrgreen:

 

[ERG4ALL]

Don't forget that the LEAF can save you about $200 per month when you charge off peak and compare that to the price of gasoline.

 

[Herm]

GAAAHHHHHH!!!!!! [Head explodes] There's absolutely NO difference between a tax credit and a rebate so far as economic stimulation and the deficit goes.

Sorry about the mess

What is the rule of thumb on buying a car?.. half of your yearly income?