[Acturater]

For those of you who pre-ordered prior to the latest tax bill, are you expecting to get EV tax credit?

[av0789]

I had the dealer check off the box for "not subject to cancellation" and it stated "this is a binding agreement if both parties sign this purchase order". I checked with my CPA and he stated this should be sufficient in NJ

[pharding]

Originally Posted by Acturater

For those of you who pre-ordered prior to the latest tax bill, are you expecting to get EV tax credit?

Yes.

[Acturater]

Originally Posted by av0789

I had the dealer check off the box for "not subject to cancellation" and it stated "this is a binding agreement if both parties sign this purchase order". I checked with my CPA and he stated this should be sufficient in NJ

Assuming this must’ve been before aug 2022?

[mlanes01]

What was the cutoff date. I took delivery in August

[Raille]

August 16, anything after that will come down to what documentation you have that could support it was binding and your local state laws.

Unless of course further BMW support or IRS updates change things up.

[av0789]

Originally Posted by Acturater

Assuming this must’ve been before aug 2022?

Yep! This was signed towards the end of July.

[mlanes01]

Originally Posted by Raille

August 16, anything after that will come down to what documentation you have that could support it was binding and your local state laws.

Unless of course further BMW support or IRS updates change things up.

That's awesome I took delivery August 15th...

[greentrbo95gst]

How do we know if the right things was checked on the order sheet?

[TurtleBoy]

Originally Posted by greentrbo95gst

How do we know if the right things was checked on the order sheet?

Highly unlikely that you have something that will meet the requirements of a binding contract. Even the purchase agreement mentioned above that says binding may not be considered binding depending on other details of the deal. For example, let's say they gave a $1k non-refundable deposit, that would negate the binding contract since it is below the 5% minimum to be considered binding.

Given the requirements set up for it, I would imagine the IRS will be fairly strict when it comes to the credit, perhaps even making it an audit flag so any return using the Transition rule will be audited.

It will be up to each person to see what documentation they have and whether they want to take the chance.

[sys1dgw]

Originally Posted by Acturater

For those of you who pre-ordered prior to the latest tax bill, are you expecting to get EV tax credit?

According to IRC 30D New Qualified Plug-In Electric Drive Motor Vehicle Credit, Aug 16, 2022, BMW I4 eDrive40 Gran Coup @ I4 M50 Gran Coup are eligible for 7500 tax credit. Found no indication that credit was removed. Please advise if you have any other information.

[jgunnz]

Originally Posted by sys1dgw

According to IRC 30D New Qualified Plug-In Electric Drive Motor Vehicle Credit, Aug 16, 2022, BMW I4 eDrive40 Gran Coup @ I4 M50 Gran Coup are eligible for 7500 tax credit. Found no indication that credit was removed. Please advise if you have any other information.

https://afdc.energy.gov/laws/electri...for-tax-credit

[TurtleBoy]

Originally Posted by sys1dgw

According to IRC 30D New Qualified Plug-In Electric Drive Motor Vehicle Credit, Aug 16, 2022, BMW I4 eDrive40 Gran Coup @ I4 M50 Gran Coup are eligible for 7500 tax credit. Found no indication that credit was removed. Please advise if you have any other information.

The I4 was no longer eligible once the IRA was signed on Aug 16th. The guidance you mention specifically notes that vehicles not assembled in NA are no longer eligible (Transition rule aside).




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

[falconey]

Originally Posted by TurtleBoy

Highly unlikely that you have something that will meet the requirements of a binding contract. Even the purchase agreement mentioned above that says binding may not be considered binding depending on other details of the deal. For example, let's say they gave a $1k non-refundable deposit, that would negate the binding contract since it is below the 5% minimum to be considered binding.

Given the requirements set up for it, I would imagine the IRS will be fairly strict when it comes to the credit, perhaps even making it an audit flag so any return using the Transition rule will be audited.

It will be up to each person to see what documentation they have and whether they want to take the chance.

I think you mean reviewed, not audited. I.e. you may have to provide documentation and if they feel it doesn't meet the need they can assess the 7500 to be repaid.

[TurtleBoy]

Originally Posted by falconey

I think you mean reviewed, not audited. I.e. you may have to provide documentation and if they feel it doesn't meet the need they can assess the 7500 to be repaid.

No, meant audit. I have seen a number of folks say they believe it will be a trigger for an audit although I guess a review would apply since it should occur first.

[falconey]

Originally Posted by TurtleBoy

No, meant audit. I have seen a number of folks say they believe it will be a trigger for an audit although I guess a review would apply since it should occur first.

They aren't going to audit anyone over this alone. That's a lot of unnecessary manual work. They may perform a review and assessment which is completely different from an audit, but also offers the tax payer an opportunity to dispute that one issue. Am audit would be a formal review of the tax payers entire return.

[TurtleBoy]

Originally Posted by falconey

They aren't going to audit anyone over this alone. That's a lot of unnecessary manual work. They may perform a review and assessment which is completely different from an audit, but also offers the tax payer an opportunity to dispute that one issue. Am audit would be a formal review of the tax payers entire return.

I guess you never know, that manual audit work is what they have said they will be increasing, at least in some areas. Plus odds probably are if someone is purposely ignoring the rules and taking the credit when they aren't eligible they are fudging on something else.

[falconey]

Originally Posted by TurtleBoy

I guess you never know, that manual audit work is what they have said they will be increasing, at least in some areas. Plus odds probably are if someone is purposely ignoring the rules and taking the credit when they aren't eligible they are fudging on something else.

The tax code has been drastically simplified. Not really a whole lot to audit even if you're itemizing. Audits will be more on the business side or super high earners trying to take advantage of all options to reduce their tax bill. In most of those cases these parties are using an accountant to file on their behalf. The Joe scmo taxpayer claiming a tax credit is more than likely not going to trigger a formal audit as it'd be a waste of time and money. They can just assess the credit and make the taxpayer prove they qualify.

[TurtleBoy]

Originally Posted by falconey

The tax code has been drastically simplified. Not really a whole lot to audit even if you're itemizing. Audits will be more on the business side or super high earners trying to take advantage of all options to reduce their tax bill. In most of those cases these parties are using an accountant to file on their behalf. The Joe scmo taxpayer claiming a tax credit is more than likely not going to trigger a formal audit as it'd be a waste of time and money. They can just assess the credit and make the taxpayer prove they qualify.

When has wasting time been of any concern to a government worker?

While they certainly audit very high incomes at a higher rate they still audit the lower incomes also. From everything that has come out and been speculated on, those over $400k will likely see a doubling of the audit rate while those below see rates consistent with historic levels. Either way it really doesn't matter if it is a review, mail audit, in-person audit, etc. if taking the credit is some sort of trigger to getting the return scrutinized it will have the same effect.



https://www.cnbc.com/2022/06/02/irs-...r-earners.html

[cruzer666]

Originally Posted by Acturater

For those of you who pre-ordered prior to the latest tax bill, are you expecting to get EV tax credit?

No. I’ll do what the tax software says though.