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garygid
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Leaf Number: 000855
Location: Laguna Hills, Orange Co, CA

Re: How Exactly Will The Tax Credit Work

Wed May 12, 2010 9:37 am

I had missed that cutoff date, thanks!
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2010 Prius
2011 LEAF, 2014 Tesla S85
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LeafHopper
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Re: How Exactly Will The Tax Credit Work

Wed May 12, 2010 1:25 pm

If you need to boost your tax so that you can apply the full credit. This is a good time to convert your conventional IRA to a Roth IRA. The amount converted will be taxable and could be used to increase your taxes to $7,500. The advantage is that you can move your IRA money so that it will be taxed at a low rate today and zero additional tax in the future. It will depend on your expected retirement tax rate, but it works very well for me. I used my 2009 tax program to test this hypothesis. In my particular case, I can pay 15% today and nothing tomorrow on my IRA savings.

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garygid
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Posts: 12469
Joined: Wed Apr 21, 2010 8:10 am
Delivery Date: 29 Mar 2011
Leaf Number: 000855
Location: Laguna Hills, Orange Co, CA

Re: How Exactly Will The Tax Credit Work

Wed May 12, 2010 1:55 pm

Very good idea when one has funds in an IRA, and will not otherwise pay enough taxes to take advantage of the full $7500 tax credit.
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2010 Prius
2011 LEAF, 2014 Tesla S85
2018 & 2019 Tesla Model 3
PU: SDG&E
Solar PV: 33 x 225W -> 7 kW max AC
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EVDRIVER
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Joined: Sat Apr 24, 2010 7:51 am

Re: How Exactly Will The Tax Credit Work

Wed May 12, 2010 3:56 pm

LeafHopper wrote:If you need to boost your tax so that you can apply the full credit. This is a good time to convert your conventional IRA to a Roth IRA. The amount converted will be taxable and could be used to increase your taxes to $7,500. The advantage is that you can move your IRA money so that it will be taxed at a low rate today and zero additional tax in the future. It will depend on your expected retirement tax rate, but it works very well for me. I used my 2009 tax program to test this hypothesis. In my particular case, I can pay 15% today and nothing tomorrow on my IRA savings.

I intend to do something like that and I did discover I may be able to get carry-over on the credit to the next year as a business expense so I may take that route.

LEAFfan
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Re: How Exactly Will The Tax Credit Work

Wed May 12, 2010 10:21 pm

dcmeserve wrote:On my own question:
Will the tax credit apply against the Alternative Minimum Tax?
I downloaded some of the Fed tax forms. For 2009 at least, it looks like the answer is yes, because on form 8936 for the electric car credit, it says to put the credit amount on line 53 of the main tax form 1040. The adjustment to account for AMT is back on line 45, so all the credits on lines 47 through 53 apply to the AMT.

It would still be nice to find some confirmation that it will continue to apply for future tax years...
The $7500 fed tax credit HAS to be used in one year, and does NOT rollover for future years. Someone already found the wording in the law and reported it on here somewhere else.
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LEAFfan
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Re: How Exactly Will The Tax Credit Work

Wed May 12, 2010 10:26 pm

garygid wrote:With the lease it will be something like $2000 plus tax, license, etc., maybe $5000, right?

Then about $14000 for the 35 remaining months.

What would the buy-out be, maybe another $14,000 to $18,000?

Is the buyout fixed as part of the lease agreement, or indexed to the used-car price when your lease terminates?

Thanks, Gary (never leased)
The most you will have to pay to start the lease would be LESS than $2500. The tax will only be on the $400 or so payment (SL). The $2000 down includes the first payment.
2013 LEAF SV Del. 2/28/13
2013 LEAF World Record for Most Miles Driven On One Charge-188 miles/8.8 m/kW h
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Gonewild
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Location: Chandler, AZ

Re: How Exactly Will The Tax Credit Work

Thu May 13, 2010 9:08 am

My question is, if you put money down on the car in August and get the car available in Dec could you tell the dealer to wait until Jan 1 so my credit is for 2011?
Over 25,300 miles Plus - Now Sold/ Lease given back to Nissan 8-25-2012
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mwalsh
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Leaf Number: 0213
Location: Garden Grove, CA

Re: How Exactly Will The Tax Credit Work

Thu May 13, 2010 9:59 am

Gonewild wrote:My question is, if you put money down on the car in August and get the car available in Dec could you tell the dealer to wait until Jan 1 so my credit is for 2011?
I don't think I could wait even a month, knowing my new car was there and ready for me to collect!
2011 Blue Ocean SL with 86,000 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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mwalsh
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Re: How Exactly Will The Tax Credit Work

Thu May 13, 2010 10:34 am

Tax credit summary (as I understand it, and PLEASE I'm no accountant!):

Leaf

$7500
Cannot be rolled over - must be used in the tax year when you bought the vehicle (as legally described by your state)
Can be used with the AMT
Expires when each manufacturer has sold 200,000 EV units (a bit more complex than that, but that's the gist of it)

EVSE


50% of the cost of the unit plus installation up to $4000 (so a maximum $2000 credit)
Expires Dec. 2010 unless government extends it further.

PV (solar) System

30% of the cost of the unit plus installation with no maximum cap
CAN be rolled over
Expires Dec. 2016


On the EVSE and PV system credits...I don't know if they are also good for those who use the AMT. I also don't know if the credit for the EVSE can be rolled over. If anyone does know these things, or sees any other discrepancies, I'll be happy to modify my post.
2011 Blue Ocean SL with 86,000 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: 9753
Joined: Thu Apr 22, 2010 10:10 am
Delivery Date: 05 Jan 2011
Leaf Number: 0213
Location: Garden Grove, CA

Re: How Exactly Will The Tax Credit Work

Thu May 13, 2010 10:44 am

garygid wrote:What would the buy-out be, maybe another $14,000 to $18,000?
Thanks, Gary (never leased)
Been hunting around the interwebs and somebody on the Aptera forum claims to have seen $16,000 on the Nissan TV commercial! That would seem to make leasing a very reasonable proposition!
2011 Blue Ocean SL with 86,000 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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