[mullini]

Hey bought my i3 this week and loving it. I do my own taxes so I did the usual online research re the EV fed tax credit and found the usual ball of confusion. To be on the safe side I decided to adjust my withholding, as I usually get at least a small refund or don't have to make a payment over a few hundred.

But now I seem to see a consensus that adjusting withholding is unnecessary, that the EV tax credit is applied to your total tax liability for the year. So for example, my total tax for 2016 was a few thousand over $7500 and 2017 will surely be very similar.

That means I'm fine for the full $7500 tax credit. By adjusting my withholding, I'll get a smaller refund than I would have otherwise, but either way, I'll get the benefit of the fed tax credit.

Does that align with others' experience?

[-c-]

Originally Posted by mullini

Hey bought my i3 this week and loving it. I do my own taxes so I did the usual online research re the EV fed tax credit and found the usual ball of confusion. To be on the safe side I decided to adjust my withholding, as I usually get at least a small refund or don't have to make a payment over a few hundred.

But now I seem to see a consensus that adjusting withholding is unnecessary, that the EV tax credit is applied to your total tax liability for the year. So for example, my total tax for 2016 was a few thousand over $7500 and 2017 will surely be very similar.

That means I'm fine for the full $7500 tax credit. By adjusting my withholding, I'll get a smaller refund than I would have otherwise, but either way, I'll get the benefit of the fed tax credit.

Does that align with others' experience?

I usually owe 4K a year on my taxes and when I bought the car I got a refund of 3500 ! Yayyy

It's a full check you get back. So you technically don't need to touch your withholding, so if you normally get 1k dollars back each year you'll get a 8500 dollar check.

So nice !

[mullini]

Thanks, sounds good. But I think I'll stay with the withholding change I made, enjoy a few months of more take home pay, and then have less of a big refund for '17 taxes. I used to celebrate big refunds until the bulb went off and I realized Uncle Sam was enjoying my money all year long...

[SoCali3Bear]

Can you still get this tax refund if you are leasing? Can you share the form number we need to fill out?

Thank you

[Scott2.0]

Not tax credit on a used i3, right?

[baldyloxx]

Originally Posted by SoCali3Bear

Can you still get this tax refund if you are leasing? Can you share the form number we need to fill out?

Thank you

I believe LEASEs still qualify you for the State refund ($2500, the smaller of the two) but not the Federal ($7500)

[VacMan1]

The federal lease credit is factored into the lease up front. That's why the pricing is so aggressive for a $50k+ car. You can still get the CA credit if you lease...I just got mine back in June, about 6 months after submitting it.

[VacMan1]

Originally Posted by Scott2.0

Not tax credit on a used i3, right?

Correct, new sales or leases only.

[Simon_135i]

About this tax credit; I'm reading up and can someone who got this from previous years explain if indeed it is a credit and not a tax refund. I continually read that it is a credit so you would only get the 7500 credit only if you owe that much. But then I've read it's your tax liability which is different. Which one is it?!!

[Flying Ace]

Originally Posted by SoCali3Bear

Can you still get this tax refund if you are leasing? Can you share the form number we need to fill out?

Thank you

no federal, but state of California passes on state tax credit to leasees

[Flying Ace]

Originally Posted by Scott2.0

Not tax credit on a used i3, right?

it depends on what "used" means. The fed and state tax credits go to the person who registers the car first.

I've seen some "used" cars that never got registered. They sometimes are dealer demos. Then when you are the first registered party, you'll get the tax credit.

I've noticed a lot of Porsche (and other dealers) who can't sell their EVs and PHEVs are registering the car for their fleet/loaner cars, taking the tax credit, using the car, then trying to sell the car at a discount. Usually these cars have like 5000 miles and discounted competitively. Alas, they're still used cars and will never qualify for tax credit again.

[SIN_CITY_TROLL]

Originally Posted by SoCali3Bear

Can you still get this tax refund if you are leasing? Can you share the form number we need to fill out?

Thank you

NO YOU DO NOT!!! I have a tax audit letter stating I owe for taking credit for a leased i3 to prove it

Turbo tax fucked me cuz the software allowed me to take credit for it even when I clicked it's a lease... Bout to lawyer up if I have a case...

[baldyloxx]

You still qualify for State Credit on a Lease.. Exactly how much of the Max $2500 is the question. Federal Credit does not apply to a lease for the Leaser, since technically the Dealership still 'owns' the vehicle.

[jmg]

Originally Posted by baldyloxx

You still qualify for State Credit on a Lease.. Exactly how much of the Max $2500 is the question. Federal Credit does not apply to a lease for the Leaser, since technically the Dealership still 'owns' the vehicle.

They usually pass this into the leaser, correct? Technically you cannot claim the credit because it's already been claimed by BMW and credited to your lease.

[baldyloxx]

Correct, the lease price is 'usually' discounted because they factor in some of the Federal Credit that they will claim from the Govt. It's up to the individual to properly claim the State portion.. I was told it happens at the end of the year when I file my regular taxes. Some section in the form. I remember there is always a question on my form about whether or not I've bought a vehicle the past year. I'm guessing thats the option.. We shall see

[SIN_CITY_TROLL]

Originally Posted by baldyloxx

You still qualify for State Credit on a Lease.. Exactly how much of the Max $2500 is the question. Federal Credit does not apply to a lease for the Leaser, since technically the Dealership still 'owns' the vehicle.

I'm in Nevada with no state tax so I'm still out of luck

[baldyloxx]

Unfortunately...