BMW response to Inflation Reduction Act

TurtleBoy · 08-23-2022, 06:38 PM

Quote:

Originally Posted by spool twice

Thanks guys! I clicked on the wrong link initially.

*edit*, so I'm reading this as my initial deposit isn't binding because it was considered refundable (so really zero damages right?), therefore non-binding. In otherwords, I wouldn't qualify under the new terms.

Correct, if you have a refundable deposit then your contract is not considered binding and would not meet the requirements for the Transition rule. Given that, then you would no longer be eligible for the credit.

bavarianride · 08-23-2022, 06:39 PM

Quote:

Originally Posted by spool twice

*edit*, so I'm reading this as my initial deposit isn't binding because it was considered refundable (so really zero damages right?), therefore non-binding. In otherwords, I wouldn't qualify under the new terms.

Unfortunately, that is correct. To be specific, it is disqualified under the transition rule.

pjbm4 · 08-30-2022, 12:02 PM

Quote:

Originally Posted by WER2XU

Please go here and let the IRS know the process is broken.
https://apps.irs.gov/app/sams

Done, I wrote to them as well regarding CA and non-binding contracts.

cruzer666 · 08-30-2022, 01:30 PM

Quote:

Originally Posted by spool twice

Thanks guys! I clicked on the wrong link initially.

*edit*, so I'm reading this as my initial deposit isn't binding because it was considered refundable (so really zero damages right?), therefore non-binding. In otherwords, I wouldn't qualify under the new terms.

I would wait until tax time before drawing any conclusions. If you need to make a decision now, you're likely not getting the credit.

However, IRS document references "in general" before all further information, meaning there is a possibility of exception to the rule. This should be further clarified come tax time.

nuwde · 09-28-2022, 11:44 PM

Quote:

Originally Posted by Technic

If you have a preorder then the 1.9% APR, and price protection, are yours without any “fight”.

I pre-ordered and taking delivery soon. Can you tell me more about the 1.9% APR? My advisor offered 2.9%. Am I eligible for 1.9%?

Thanks!

Technic · 09-29-2022, 03:57 AM

Quote:

Originally Posted by nuwde

I pre-ordered and taking delivery soon. Can you tell me more about the 1.9% APR? My advisor offered 2.9%. Am I eligible for 1.9%?

Thanks!

Dealer is allowed to add 1% to the BMWFS 1.9% APR.

bavarianride · 03-08-2023, 07:11 PM

So are i4 owners that took delivery after 8/15/2022 claiming the EV credit on their tax returns?

I think techwhiz1 mentioned that the IRS has clarified that EV credit under prior rules must require 2022 delivery(plus written binding offer prior to 8/15/2022 enactment).

ShortbusScholar · 03-10-2023, 01:55 PM

Apologies, I've been viewing these boards for a while now but never had anything to weigh in on before. I'm not a tax professional in any sense but I plan on applying the tax credit into my 2022 taxes based on a nonrefundable deposit agreement from 2022 and delivery of vehicle in 2023.

This is based on the IRS guidance (linked below) that states:
"If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules. To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return."

IRS Guidance:
https://www.irs.gov/credits-deductio...2022-or-before

Furthermore, the guidance states to use Form 8936. The instructions for Form 8936 specifically states:
"Enter 08/15/2022 if you qualify and elect to apply the transition rule discussed below.

Transition rule.

If you purchased, or entered into a written binding contract to purchase, a qualified plug-in electric drive motor vehicle after 2021 and before August 16, 2022, you may elect to treat such vehicle as having been placed in service on August 15, 2022, the day before the enactment date of the Inflation Reduction Act of 2022."

Form 8936 Instructions:
https://www.irs.gov/instructions/i8936

Seems like the restrictions are (1) do you have a binding contract/agreement and (2) was that agreement made between 1/1/22 and 8/15/22. Again, not a tax professional but for what it's worth, I did run this interpretation by TurboTax live help as well. Took more than an hour before they arrived at the same conclusion.

Small edit: also given my username, please remember to consult your own tax professional/attorney before making any decisions on your own taxes

TurtleBoy · 03-10-2023, 02:35 PM

Quote:

Originally Posted by ShortbusScholar

Apologies, I've been viewing these boards for a while now but never had anything to weigh in on before. I'm not a tax professional in any sense but I plan on applying the tax credit into my 2022 taxes based on a nonrefundable deposit agreement from 2022 and delivery of vehicle in 2023.

Welcome to the forum. Very unlikely your non-refundable deposit qualifies for the transition rule but with a little luck you won't have it reviewed.

Edit: In see you are in California, non-refundable deposits are illegal there so it definitely would not qualify.

03-08-2023, 07:11 PM	#117
bavarianride Major General 1505 Rep 5,087 Posts Drives: bimmer Join Date: Feb 2013 Location: northern california iTrader: (0)	So are i4 owners that took delivery after 8/15/2022 claiming the EV credit on their tax returns? I think techwhiz1 mentioned that the IRS has clarified that EV credit under prior rules must require 2022 delivery(plus written binding offer prior to 8/15/2022 enactment).
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03-10-2023, 01:55 PM	#118
ShortbusScholar Registered 0 Rep 1 Posts Drives: BMW i4M50 Join Date: Mar 2023 Location: Southern California iTrader: (0)	Apologies, I've been viewing these boards for a while now but never had anything to weigh in on before. I'm not a tax professional in any sense but I plan on applying the tax credit into my 2022 taxes based on a nonrefundable deposit agreement from 2022 and delivery of vehicle in 2023. This is based on the IRS guidance (linked below) that states: "If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules. To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return." IRS Guidance: https://www.irs.gov/credits-deductio...2022-or-before Furthermore, the guidance states to use Form 8936. The instructions for Form 8936 specifically states: "Enter 08/15/2022 if you qualify and elect to apply the transition rule discussed below. Transition rule. If you purchased, or entered into a written binding contract to purchase, a qualified plug-in electric drive motor vehicle after 2021 and before August 16, 2022, you may elect to treat such vehicle as having been placed in service on August 15, 2022, the day before the enactment date of the Inflation Reduction Act of 2022." Form 8936 Instructions: https://www.irs.gov/instructions/i8936 Seems like the restrictions are (1) do you have a binding contract/agreement and (2) was that agreement made between 1/1/22 and 8/15/22. Again, not a tax professional but for what it's worth, I did run this interpretation by TurboTax live help as well. Took more than an hour before they arrived at the same conclusion. Small edit: also given my username, please remember to consult your own tax professional/attorney before making any decisions on your own taxes Last edited by ShortbusScholar; 03-10-2023 at 02:02 PM..
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