garygid
Well-known member
I had missed that cutoff date, thanks!
How Exactly Will The Tax Credit Work
- Thread starter SilverLeaf
- Start date
Help Support My Nissan Leaf Forum:
LeafHopper
Active member
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.
garygid
Well-known member
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.
LEAFfan
Well-known member
dcmeserve said:
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.
LEAFfan
Well-known member
garygid said:
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.
Gonewild
Well-known member
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?
Gonewild said:
I don't think I could wait even a month, knowing my new car was there and ready for me to collect!
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.
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.
garygid said:
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!
Gonewild
Well-known member
mwalsh said:
OK, so I bought a PV system this year, now if I install the charger and claim the credit because it is set to expire. I will be using up my non refundable credit for the car. I pay in the area of about $6,000 in taxes so I would be better to wait until next year as I said above. YES it would be hard to wait but not getting the most of the $7,500 tax credit would hurt more. I then roll what is left over from my PV system in to 2011 and 2012 so I can get all my tax off the car. I am wondering about the leasing option. I would never do it in my life and will have to crunch the numbers to see if it solves my problem and I could then get the car this year. But the cars maybe only start being available in Dec say after Christmas so who knows. So waiting could only be a week. I could do that on my head. Any thought about my ?
Rat
Well-known member
gonewild,
Where are you located? Unless you're in one of the core cities like San Diego you probably won't be able to take actual delivery of the car or even get the charger until 2012, and maybe even a good chunk of those who are in those cities will not either, so I would guess that might simply things for your decision making.
Where are you located? Unless you're in one of the core cities like San Diego you probably won't be able to take actual delivery of the car or even get the charger until 2012, and maybe even a good chunk of those who are in those cities will not either, so I would guess that might simply things for your decision making.
evnow
Well-known member
Rat said:
Hmmm ... why ?
Nissan will want to sell atleast 30K cars in the US in the first year - so an average of 2.5K cars a month. We have, at that rate 4 months of total reservations at this point. Everyone who has reserved a car & is in the launching states, will get the car latest by 2011 March.
SBNissanLeaf
Well-known member
- Joined
- May 6, 2010
- Messages
- 68
evnow said:
That is...If everyone distributes themselves equally among Nissan Leaf dealerships, or at least in accordance with the Nissan allocation distributions...omg, did I just say the "a" word?
sjfotos
Well-known member
The name that must not be spoken.......The "A" Word. 
evnow
Well-known member
SBNissanLeaf said:
LOL.
But I do think, anyone who has put in the money will get one before the end of June '11. The post I was responding to said 2012, which doesn't look to be the case.
SBNissanLeaf
Well-known member
- Joined
- May 6, 2010
- Messages
- 68
i'm just so terrible with math...so how does it go again?
How many cars...how many months...how many dealerships..and just how much interest is Nissan earning on these deposits?
How many cars...how many months...how many dealerships..and just how much interest is Nissan earning on these deposits?
evnow
Well-known member
SBNissanLeaf said:
As for as interest - probably less than what they paid to process the $99 payments :lol:
Anyway, 9,000 reservations. Nissan plans to make 12K cars by March '11 (thier fiscal year end). Let us say, 4,000 goes to Japan. They will be 1K short before March - which they can fulfill in April.
planet4ever
Well-known member
First, don't be misled by averages. Nissan says they want to produce 50K cars the first year, but have a capacity to produce no more than 12K by March, which is four months. That says they are ramping up, which makes sense. My guess is that no more than a thousand will be on the road by the end of the year.evnow said:
Second, don't confuse "launching areas" with "launching states". California, for example, is a huge state. I'd be willing to bet there are remote parts of it where you are unlikely to be able to get a Leaf at all in 2011, except by planning a several hundred mile trip to get it home.
So, yes, end of March may be a good guess, if you are close to a launching area, but don't count on getting your Leaf much earlier than that.
Sounds like we agree on the car, but maybe not on the charging adapter: I think anyone who wants one will be able to get it before the end of this year, and should plan to do that because otherwise you get no tax credit.rat said:
LEAFfan
Well-known member
planet4ever said:
According to Nissan, there will be about 1000 cars delivered in Dec., 2010 to the five rollout states. So, contrary to your belief (was one of the first to sign up), I believe I will have mine in Dec., 2010.
Similar threads
