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mwalsh
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Leaf Number: 0213
Location: Garden Grove, CA

Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 11:01 am

sjfotos wrote: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.
Unless, as I already suggested, you adjust your withholding in anticipation of it.
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Bicster
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Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 11:15 am

mwalsh wrote:Unless, as I already suggested, you adjust your withholding in anticipation of it.
That could be a risky move. Not many people (if any!) will get a Leaf this year. 2011 may not be much better if you don't live in one of the initial roll-out areas. Check with your accountant and psychic before making tax-related plans for events that are not in your control :)

I live in Houston, which is oft-mentioned as a secondary market before the full public roll-out, but it's not clear to me whether I'll see a Leaf before 2012.

I'm a bit nervous that nobody appears to have seen Leaf validation prototypes on the road anywhere. Nissan's public face seems confident, so hopefully things will solidify this summer.

I did see a blog post yesterday from someone who has driven the EV-12 and claims to have ridden in an apparently production-intent Leaf, but no details were given. Nondisclosure agreement?
Reserved on April 20, 2010 - Never purchased

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sjfotos
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Location: Mechanicsburg, PA

Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 11:33 am

mwalsh, you make a perfectly valid point as long as you are sure about delivery in any given tax year and as long as you are disciplined about keeping track of the 'extra' income so that it is available come purchase time. (Or unless you simply are very cash positive). Most people can't rely on any of those 'events'.

In the old days the IRS didn't care about your withholding strategy. Currently they take a dim view of under withholding.
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Gonewild
Posts: 1262
Joined: Wed Apr 28, 2010 5:05 pm
Delivery Date: 18 May 2011
Leaf Number: 229
Location: Chandler, AZ

Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 11:52 am

Well I got a Solar PV system this year and I live in AZ. I have my $99 bucks down early so I almost sure I am on the short list to get the car. I guess I got screwed and have to wait until Jan 11 so I can claim the credit. I will have solar and car credit I think I can use the solar credit forward does anyone know? I sure do not want to buy a car and not get any money back.
Over 25,300 miles Plus - Now Sold/ Lease given back to Nissan 8-25-2012
Ordered Glacier Pearl Nissan Leaf SL eTech Edition on 8/31, Delivered March 1, 2011
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dcmeserve
Posts: 3
Joined: Fri May 07, 2010 12:16 pm

Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 12:20 pm

That could be a risky move. Not many people (if any!) will get a Leaf this year.
I would assume that the actual delivery of the car shouldn't be what matters -- what matters is when Nissan gets your money! :)
So if Nissan's requirement to "commit" to the purchase in August 2010 means that you have to pay for it at that time (I have no information on whether this is actually the case!), then you'd definitely take the credit for the 2010 tax year...

dcmeserve
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Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 12:23 pm

A point that hasn't been addressed in this thread yet: will the tax credit apply against the Alternative Minimum Tax?!

I actually found a FAQ page on the IRS site that indirectly said that yes, it would, for all tax years 2009 and onward (sorry don't have the link handy here), but I wish I had a more definitive answer...

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mwalsh
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Delivery Date: 05 Jan 2011
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Location: Garden Grove, CA

Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 12:30 pm

dcmeserve wrote:A point that hasn't been addressed in this thread yet: will the tax credit apply against the Alternative Minimum Tax?!

I actually found a FAQ page on the IRS site that indirectly said that yes, it would, for all tax years 2009 and onward (sorry don't have the link handy here), but I wish I had a more definitive answer...
Really? I heard to the contrary.

As far as my own withholding strategy, I also plan on a PV system, and either I'll get the PV system, the car, or both, this year. So, being as the tax credits for the PV system can be carried over (until 2016), all ways round I should be good for credits which eliminate my tax liability for the next 3-4 years.

Edit: Answer to Gonewild's question about carrying over PV system tax credits in sentence above.
2011 Blue Ocean SL with 84,000 miles
2015 pack on 12/30/15
Tinted windows
Bosch AGM 12v
Ecopia 422+ tires
L1 EVSE upgrade
FIAMM horns
Superbright LED lighting
2013 sun visors
LED shifter
Heated seats
GT-R map lamp lenses
Altima illuminated door switches

User avatar
mwalsh
Posts: 9644
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Delivery Date: 05 Jan 2011
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Location: Garden Grove, CA

Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 12:36 pm

Bicster wrote:I'm a bit nervous that nobody appears to have seen Leaf validation prototypes on the road anywhere. Nissan's public face seems confident, so hopefully things will solidify this summer.
I must admit that it's in the back of my mind too. Just how much are we early adopters going to be guinea pigs?
2011 Blue Ocean SL with 84,000 miles
2015 pack on 12/30/15
Tinted windows
Bosch AGM 12v
Ecopia 422+ tires
L1 EVSE upgrade
FIAMM horns
Superbright LED lighting
2013 sun visors
LED shifter
Heated seats
GT-R map lamp lenses
Altima illuminated door switches

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planet4ever
Posts: 4674
Joined: Sat Apr 03, 2010 9:53 pm
Delivery Date: 02 May 2011
Leaf Number: 1537
Location: Morgan Hill, CA, south of San Jose

Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 12:38 pm

Bicster wrote: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.
Sorry, no tax credit for you. The credit only applies to purchase of new vehicles. Yours would be a used vehicle which you bought from the leasing company.
End of April 2013: Traded my 2011 SL for a 2013 S with charge pkg.

Bicster
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Re: How Exactly Will The Tax Credit Work

Fri May 07, 2010 12:45 pm

planet4ever wrote:
Bicster wrote: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.
Sorry, no tax credit for you. The credit only applies to purchase of new vehicles. Yours would be a used vehicle which you bought from the leasing company.
The tax credit is built into the lease price. The tax credit goes to Nissan (the buyer), and it is passed along to the customer (the lessee). I'm no expert on leasing but I don't see why you couldn't pay off the lease early by refinancing it into a conventional loan, as long as you meet the terms of the lease (e.g. pay all the interest you owe them for the 36-month lease.)

Technically you'd have a second-hand car, and depending on your state you might have to pay sales tax on all or part of it again.
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