[math08]

I agree that it is total tax liability, which must exceed $7,500. My point is this.

Withholding and estimated taxes paid during the year will determine if you pay when you file your return, or if you will get a refund. If you did not pay in enough taxes during the year via withholding or estimated taxes and would normally owe taxes when you file, the credit lessens the amount you will pay when you file your return. Conversely, if you overpaid you would get a refund.

[TurtleBoy]

Originally Posted by math08

My point is this.

Withholding and estimated taxes paid during the year will determine if you pay when you file your return, or if you will get a refund. If you did not pay in enough taxes during the year via withholding or estimated taxes and would normally owe taxes when you file, the credit lessens the amount you will pay when you file your return. Conversely, if you overpaid you would get a refund.

Fairly meaningless, although possibly inaccurate, other than adding confusion to the situation but okay.

[math08]

Based on how he asked the question, I had thought that was where he was going. Not trying to be confusing. We all agree.

[Brigitte]

Originally Posted by P1

I went to the dealership today and if I had ordered a 45e today, seems like it wouldn't be delivered until January of 2023.

Does this mean the $7,500 credit is out of the question?

Also, and perhaps I should ask my CPA this, but is the $7,500 a deduction (if you made $107,500 it would now be reduced to $100,000) or is more along the lines if you are going to get a $5,000 return from the IRS, now you'll get $12,500 from the IRS?

The tax credit is up to $7500 not to exceed your tax liability which is the amount on line 24 of the 1040 form.

[carsar12]

Originally Posted by Celos

If we do that, then the entire commenting-on-the-internet thing breaks down!

[ghost00]

Has IRS Audit anyone for claiming EV credit along with Section 179 for 100% deduction ?

[quad_drive]

Originally Posted by ghost00

Has IRS Audit anyone for claiming EV credit along with Section 179 for 100% deduction ?

2 very different topics! EV credit is pretty straightforward, if you bought a qualified one and able to provide the VIN and paperwork, your are good.
Section 179 is a whole different story to prove for % business use. EV credit goes to the company, not directly to you. Look at the IRS form for EV credit!

[abeijonat]

How would you be able to claim both?
- Can I claim the EV tax credit if I purchase it under my single member LLC?

[bestoverall]

Newbie here. Just ordered a 2023 X5 45e from a dealer in NJ, and was told that I will get it by the end of October. The main reason I rushed the order was to ensure that I get the federal tax incentive. After reading all the posts, it seems like it is pretty much certain that I should be able to get the credit. Am I wrong in assuming this? Any helpful advice will be appreciated.

[TurtleBoy]

Originally Posted by bestoverall

Newbie here. Just ordered a 2023 X5 45e from a dealer in NJ, and was told that I will get it by the end of October. The main reason I rushed the order was to ensure that I get the federal tax incentive. After reading all the posts, it seems like it is pretty much certain that I should be able to get the credit. Am I wrong in assuming this? Any helpful advice will be appreciated.

No, you are correct. As long as you take delivery by 12/31/22 you should be fine. The chance of eligibility changing before that is very slim.

[bestoverall]

Good to know, and thanks for confirming.

[mjkasper]

Does anyone know if the new law requires that dealership take the tax credit off of the purchase price (i.e. we sign the credit over to the dealership/BMW) or do we pay full price at time of purchase and receive the credit when we file our taxes?

I know that my dealership used to take the credit off of the purchase price but then switched to requiring the buyer to pay full price and the buyer takes the credit on their 1040, but this was prior to the new law being signed.

I believe some of the provisions of the new law went into effect the day the bill was signed but other provisions aren't effective until Jan 1, 2023.

[brad_saggy]

Based on IRS guidelines, only North American assembly requirement goes into effect between Aug 16 and Dec 31. Otherwise, old rules apply. So, 1040 tax return will be the way to get the credits.

https://www.irs.gov/businesses/plug-...30-and-irc-30d

[TurtleBoy]

Originally Posted by mjkasper

Does anyone know if the new law requires that dealership take the tax credit off of the purchase price (i.e. we sign the credit over to the dealership/BMW) or do we pay full price at time of purchase and receive the credit when we file our taxes?

I know that my dealership used to take the credit off of the purchase price but then switched to requiring the buyer to pay full price and the buyer takes the credit on their 1040, but this was prior to the new law being signed.

I believe some of the provisions of the new law went into effect the day the bill was signed but other provisions aren't effective until Jan 1, 2023.

The option to receive the credit at time of purchase doesn’t start until 2024. As mentioned, the only part of the law that went into effect already is the assembly in NA requirement.

[bmwakmg]

So if I get the 45e delivered in 2023 - will I be able to claim the $7500 credit when I file my 2023 taxes in 2024?

[jiggie]

Originally Posted by bmwakmg

So if I get the 45e delivered in 2023 - will I be able to claim the $7500 credit when I file my 2023 taxes in 2024?

As it stands right now, No.

[Aloux]

I would say no. There are too many items that we don't know yet about the new law.

Best chance to get the rebate is staying with a delivery in 2022 as the x45e is assembled in the US. (https://www.irs.gov/businesses/plug-...30-and-irc-30d).

For 2023 deliveries, you will have to look at your income, the cost of the car, what is in the battery, etc.

[TurtleBoy]

Originally Posted by bmwakmg

So if I get the 45e delivered in 2023 - will I be able to claim the $7500 credit when I file my 2023 taxes in 2024?

As mentioned, no. All the information we have is that it will not meet any of the battery requirements for the credit. Also BMWNA's CEO said that there will be no vehicles eligible for the credit.

[bmwakmg]

Thank you guys for explaining.

[psk]

Last week I bought 2023 X5 45e, which I had ordered in May by paying $1000 deposit. Do you think I can get $7500 tax rebate? Until recently CVRP rebate $750 was available. Looks like that is gone.

[TurtleBoy]

Originally Posted by psk

Last week I bought 2023 X5 45e, which I had ordered in May by paying $1000 deposit. Do you think I can get $7500 tax rebate? Until recently CVRP rebate $750 was available. Looks like that is gone.

Nothing has changed for the 45e. If you have already purchased it then you are eligible to take the credit, given tax liability requirements.

[xchriz012x]

if i were to order a 45e today....9/16/22...and take delivery of the car before 12/31/22...i won't qualify for the federal tax credit?