sjfotos said:
Unless, as I already suggested, you adjust your withholding in anticipation of it.
How Exactly Will The Tax Credit Work
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Unless, as I already suggested, you adjust your withholding in anticipation of it.
Bicster
Well-known member
mwalsh said:
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?
sjfotos
Well-known member
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.
In the old days the IRS didn't care about your withholding strategy. Currently they take a dim view of under withholding.
Gonewild
Well-known member
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.
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...
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...
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...
dcmeserve said:
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.
Bicster said:
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?
planet4ever
Well-known member
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.Bicster said:
Bicster
Well-known member
planet4ever said:
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.
planet4ever
Well-known member
I don't know the answer, but I do know I bought a PV system and a Prius in the same year a few years back, then discovered I couldn't claim both of them, nor could I carry either forward. The situations may be entirely different, but I urge you to check with an accountant before you make any irrevocable decisions.Gonewild said:
planet4ever said:
I'll have to find it again, but the solar system credit does carryover now. I believe it's as written in the Recovery and Reinvestment Act, 2009. But like I said, I'll have to find it again.
On my own question:
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...
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...
garygid
Well-known member
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)
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)
Bicster
Well-known member
The buy-out is fixed per the lease agreement.
I've never leased either. Actually, I've never bought a new car before. I'm almost 50 and I'll be getting my cherry popped! :shock:
What do you typically owe when you decide to buy out the lease and keep the car? Is it just the residual value you negotiated when you first got the car? Or do you still have to pay junk like excess mileage?
What do you typically owe when you decide to buy out the lease and keep the car? Is it just the residual value you negotiated when you first got the car? Or do you still have to pay junk like excess mileage?
Bicster
Well-known member
mwalsh said:
Junk like excess mileage, wear and tear, etc., only applies if you return the car to the lease company. You just pay the pre-negotiated acquisition fee and residual value as stated in the lease agreement. We do not know what residual value Nissan will be using to compute these leases, but it's generally around 57% of MSRP (before credit? after credit?) for a 36-month lease.
sjfotos
Well-known member
dcmeserve said:
I asked this question yesterday of my accountant and he said it does apply to the AMT, at least so far, in 2010.
leafygreen
Active member
Regarding the tax credit for EVSE, I'm a little confused about what is covered.
In another thread I saw people discussing upgrading their service panel to
handle the extra circuit to the garage, which could cost a thousand or more.
Would this be considered part of the "cost of installing alternative fueling equipment"
referred to in the tax credit description? Or would it just cover the cost of the
box in the garage? Someone earlier posted the links to the description and IRS forms:
http://www.afdc.energy.gov/afdc/laws/law/US/351
http://www.irs.gov/pub/irs-pdf/f8911.pdf
By the way, it also says: "The credit expires December 31, 2010". Maybe it will be extended?
In another thread I saw people discussing upgrading their service panel to
handle the extra circuit to the garage, which could cost a thousand or more.
Would this be considered part of the "cost of installing alternative fueling equipment"
referred to in the tax credit description? Or would it just cover the cost of the
box in the garage? Someone earlier posted the links to the description and IRS forms:
http://www.afdc.energy.gov/afdc/laws/law/US/351
http://www.irs.gov/pub/irs-pdf/f8911.pdf
By the way, it also says: "The credit expires December 31, 2010". Maybe it will be extended?
planet4ever
Well-known member
Well, I tried to dig through the US Codes on this. 26USC30C says the cost includes the same things (with one exception) as are included in Sec. 179A, and that says under (e)(3):leafygreen said:
So I think you should be able to convince the IRS that if the service panel had to be upgraded, then the cost of that would be included.
Have you noticed that Nissan is pushing everyone to get the EVSE installed this year, regardless of when they get the car? That might suggest they are dubious as to an extension.leafygreen said:
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