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Re: How Exactly Will The Tax Credit Work

Posted: Thu May 06, 2010 2:22 pm
by EVDRIVER
I had my tax person process the rebate as if I bought in 99 with the correct form filed, I file as a sole proprietor and the unused portion carried over to 2010 so there may be some opportunities for carry over. I will need to check for 2010 filings, and if there is a way to maximize the rebate I will find it and let everyone know.

Re: How Exactly Will The Tax Credit Work

Posted: Thu May 06, 2010 2:53 pm
by sjfotos
I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.

Re: How Exactly Will The Tax Credit Work

Posted: Thu May 06, 2010 3:20 pm
by EVDRIVER
sjfotos wrote:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.

It is not refundable.

Re: How Exactly Will The Tax Credit Work

Posted: Thu May 06, 2010 4:44 pm
by LEAFfan
sjfotos wrote:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
It's not only unrefundable, but you can't carry over the unused portion to the next tax year either.

Re: How Exactly Will The Tax Credit Work

Posted: Thu May 06, 2010 4:56 pm
by EVDRIVER
leaffan wrote:
sjfotos wrote:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
It's not only unrefundable, but you can't carry over the unused portion to the next tax year either.

SOme may be able depending on how they file but for most it will not.

Re: How Exactly Will The Tax Credit Work

Posted: Thu May 06, 2010 5:09 pm
by sjfotos
leaffan wrote:
sjfotos wrote:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
It's not only unrefundable, but you can't carry over the unused portion to the next tax year either.

Yes, that is what I am assuming, but I went to get it confirmed. I believe you are correct.

Re: How Exactly Will The Tax Credit Work

Posted: Thu May 06, 2010 8:41 pm
by EVDRIVER
sjfotos wrote:
leaffan wrote:
sjfotos wrote:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
It's not only unrefundable, but you can't carry over the unused portion to the next tax year either.

Yes, that is what I am assuming, but I went to get it confirmed. I believe you are correct.

I had it ran through an accounting system and filed a return based on the 2009 return rules. I also go t carry over to 2010 but that is under business expenses.

Re: How Exactly Will The Tax Credit Work

Posted: Fri May 07, 2010 7:32 am
by Bicster
Is there any reason someone couldn't lease the car and then buy out the lease immediately (refinance into a loan)?

Although I guess you'd be stuck paying full interest on the lease (minus any down payment you could come up with) - you'd get the full $7500 tax credit immediately, which would be greater than the interest.

Re: How Exactly Will The Tax Credit Work

Posted: Fri May 07, 2010 9:49 am
by sjfotos
Here is a brief summary of what I obtained from my accountant. Note: This is not tax advice, as each taxpayer has a different situation, but is offered as general feedback that I got.

1. The program is a tax credit, not a rebate, etc. You need to have sufficient tax liability of $7,500 or more in the year of purchase to use this fully.
2. The tax credit is not 'refundable'. This means that if you do not have the $7,500 in tax liability, you will not get the difference in a cash tax refund. This is unlike the Home Buyer's program that expired last week. If you did not have sufficient tax liability, they would still send you a check for the difference.
3. The tax credit itself cannot be carried over from year to year.
4. The tax credit is applicable when you file your return for the tax year. That means there will be a gap between your purchase of the vehicle and any benefit you receive.

As I find out any additional details, I will post.

Re: How Exactly Will The Tax Credit Work

Posted: Fri May 07, 2010 9:56 am
by Bicster
This is the form: http://www.irs.gov/pub/irs-pdf/f8936.pdf

Also, here are the terms of the EVSE tax credit: http://www.afdc.energy.gov/afdc/laws/law/US/351

IRS form for EVSE credit: http://www.irs.gov/pub/irs-pdf/f8911.pdf