AMT & $7500 desperate PLEASE HELP!!!

[rpmdk]

Can anyone give me a straight answer - I've plowed through all the discussions and am no closer to understanding - there is so much info, and a bunch contradictory, including some mixing it up with EVSE credit - I've read the IRS info and can't figure that out either.

The understanding I've come to is the $7500 Fed. Tax Credit is applied to both the regular tax rate, and the AMT, so whether you pay the AMT or not it doesn't matter, your tax bill will be reduced by $7500.

Is there some sort of tax alchemy were you won't get the full $7500 if you must pay the AMT?

I understand if you don't owe more than $7500 you won't get the full rebate, I'm on the other end.

My accountant was in an accident and hasn't been able to get back to me for over a week. My car is SITTING at the dealership and the $5000 CA rebate is evaporating - I should have got it today, I must get it tomorrow or risk the $5000. I want to purchase, not lease.

I don't want MHOs, certainly not what the guy at the finance dept. at the dealership trying to sell a lease had to say, has anyone talked to a tax professional, or clearly understands the tax code and knows the answer?

PLEASE HELP!!!

 

[SeaAir]

I guess my response would be "so what?" Even if you get less than the full $7500, you are still going to get a better deal today than you are going to get at anytime in the future.

 

[SanDust]

Can anyone give me a straight answer - I've plowed through all the discussions and am no closer to understanding - there is so much info, and a bunch contradictory, including some mixing it up with EVSE credit - I've read the IRS info and can't figure that out either.

The understanding I've come to is the $7500 Fed. Tax Credit is applied to both the regular tax rate, and the AMT, so whether you pay the AMT or not it doesn't matter, your tax bill will be reduced by $7500.

That's right. If you owe $7500 in taxes you get the rebate. However, it may reduce other rebates which are subject to the AMT.

Having said this, you'd be smart to lease. You still get the CA rebate.

 

[rpmdk]

So I've understood it correctly, why do people keep coming up with - you may not be elligible for a full rebate if you're paying the AMT, and you should just lease and not risk it. Where does all this confusion come from.

I think I did come across that article in my googling but then read so much to the contrary it got lost in the noise.

 

[davewill]

This was the best I could do with Google and 5 minutes...
http://www.fueleconomy.gov/feg/taxevb.shtml

U.S. Department of Energy - Energy Efficiency and Renewable Energy
U.S. Environmental Protection Agency
http://www.fueleconomy.gov - the official government source for fuel economy information
...
Federal Tax Credits for Electric Vehicles Purchased in or after 2010
Photo of cash and keys
Federal Tax Credit Up To $7,500!

Electric vehicles (EVs) purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to fuel the vehicle.
...
For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT).
...
This site last modified Wednesday June 15 2011

 

[davewill]

So I've understood it correctly, why do people keep coming up with - you may not be elligible for a full rebate if you're paying the AMT, and you should just lease and not risk it. Where does all this confusion come from.

I think I did come across that article in my googling but then read so much to the contrary it got lost in the noise.

If you can't trust your own research, you're going to have to pay a professional, or lease it. Discussion here probably won't help much more than it already has/hasn't.

Edit: I pulled a different article reference that wasn't on point, and rpmdk responded just as I deleted it.

 

[smkettner]

Get the car, send in your CA rebate today! (after the purchase is complete)
If you pay $7500 in fed tax you should get the credit AMT or not.

 

[DeaneG]

In past years AMT could prevent you from getting the full credit. This was fixed in subsequent legislation.

 

[rpmdk]

great - thank you very much

davewill your googling skills are AMAZING!

 

[Nekota]

Regarding AMT and tax credits the EVSE credit evaporates if you pay $1 in AMT.

 

[rpmdk]

Regarding AMT and tax credits the EVSE credit evaporates if you pay $1 in AMT.

LADWP's got my back on that one

 

[SanDust]

Regarding AMT and tax credits the EVSE credit evaporates if you pay $1 in AMT.

This is a shorthand but potentially inaccurate way of saying that you can't pay less than the alternative minimum tax minus all credits not subject to the AMT. For example, if (1) your regular tax after rebates not subject to the AMT is $34,999 and (2) your AMT is $34,000 and (3) you have EVSE credits of $1000, then you can take an EVSE credit of $999 despite the fact that you are technically paying $1 more in tax because of the AMT. Now it is true that if your AMT tax exceeds your regular tax by $1 before any credits then you can't take any credit subject to the AMT, but that's not quite the same as "paying $1 in AMT".

 

[smkettner]

I wish I paid 34,000 in taxes

 

[SanDust]

I wish I paid 34,000 in taxes

Nice to see someone tired of paying those six figure tax bills!

 

[rpmdk]

after an hour and 20 minutes on hold with the IRS - the $7500 will apply regardless of paying AMT or regular rates

now if only someone could tell me what strapping a longboard to the roof of the car will do to the range

ITS MINE TOMORROW

(the car not the credit)

 

[ttweed]

...now if only someone could tell me what strapping a longboard to the roof of the car will do to the range

ITS MINE TOMORROW

Just get a Pope Bisect, break it down and stuff it in the hatch. No range problem at all!

TT

 

[astrorob]

i forgot to look into the EVSE credit thing, probably because it's not relevant for me (EV project participant) but i had my accountant run my 2010 return with the electric vehicle credit and it definitely survives even in the face of AMT.

 

[evmike]

The important thing is you have to actually owe $7500 in federal taxes. The credit cannot be carried forward to the next year and can only be applied to money you owe. So for example if you owe $4000 then the credit will only apply to the $4000. The far safer way to go is the lease which has Nissan getting the $7500 and taking it off the top of your lease. They can get the money immediately.

 

[planet4ever]

You have to be careful with that kind of statement, because it confuses people. What you "owe" sounds like what you haven't paid yet, and have to pay on April 15. As I think all of us here know, that is not what is involved. The issue is whether your total tax liability is $7500 or more. For most people, all or nearly all of their tax liability is taken out of their paychecks, so they don't "owe" it at tax time.

Ray

P.S. I don't believe NMAC gets the money "immediately". They get it at the end of their tax year, but they are giving you credit for it immediately if you lease.

 

[mgoleta]

The EV tax credit is not the same as the EVSE tax credit.
For individuals:
EV tax credit ($7500 for the LEAF) applies to the purchase of a new electric vehicle. The IRS has stated multiple times that this is not limited by AMT.
EVSE tax credit applies to charging equipment infrastructure (i.e. EVSE installation and EVSE equipment cost). The IRS has stated that that is limited by AMT.
It is important when talking to your tax accountant not to mix the 2 up. You can also see how this works if you walk through your tax forms. If you are not comfortable doing this get help from a tax accountant.
If you are doing this through your business, consult with your tax accountant to understand how to correctly handle it.