Tax credit

[garygid]

As was stated abova, rebates FROM the MANUFACTURER are not taxable income.

 

[evnow]

How about cash back from Costco or credit card companies ?

 

[TLeaf]

I found this link very informative. It says that if the rebate is coming from the company that you directly or indirectly made a purchase from in the first place, then it is non-taxable as a "price adjustment". OK, so if I go back to Eddie Bauer a week after buying a shirt only to find it now on sale and get the price difference back, this is non-taxable. Makes sense and would cover the 2% cash back type offers from credit card companies (though you didn't exactly "purchase" from them, you did "pay" their service fee when you made the purchase) and Costco, etc.

Not knowing how the California program is funded, I wouldn't even want to speculate about whether or not it fits into this category. It does make me wonder about the Washington State program, however, with sales tax (none for EVs instead of 9.X%). Ah, wait: not a refund/rebate, just an omission of state tax. OK, but what about the State-run program for energy efficient appliances that offers $$ back for buying efficient water heaters, clothes washers, etc.? Sounds sneakily similar to the California program and makes me wonder if I'll be needing to add the value into my federal taxes unless I can find out if there's been a ruling from the IRS....

 

[garygid]

I mentioned a section that appears to cover energy production and rebates from PUs for energy-efficiency, making them "special" cases.

 

[EVDRIVER]

The agency is funded by the state of CA. If they give you money it is income, period. The only way it is exempt is if there is an IRS disclosure specific to that incentive. Anything else is just interpretation and if subjected to an audit you would be liable for taxes and penalties. When I did all my solar rebates they had specific filing instructions based on the specific rebates. Until the IRS states in writing otherwise it is taxable. This is what an IRS tax specialist told me specifically, Anyone unsure can write the IRS for a written answer.

 

[LEAFer]

An inquiry to higher-level IRS management is in progress, but expected to take a week before an answer is given.

 

[LEAFfan]

The agency is funded by the state of CA. If they give you money it is income, period. The only way it is exempt is if there is an IRS disclosure specific to that incentive. Anything else is just interpretation and if subjected to an audit you would be liable for taxes and penalties. When I did all my solar rebates they had specific filing instructions based on the specific rebates. Until the IRS states in writing otherwise it is taxable. This is what an IRS tax specialist told me specifically, Anyone unsure can write the IRS for a written answer.

So if I understand you correctly, you paid taxes, fed and state on your pv system's rebate from your utility?

 

[LEAFer]

So if I understand you correctly, you paid taxes, fed and state on your pv system's rebate from your utility?

Just 'cuz you paid it ... doesn't mean you had to ! :lol:
(Sorry ... couldn't resist!)

 

[garygid]

The Energy Production rebates are covered as an exception, I think.

 

[EVDRIVER]

The agency is funded by the state of CA. If they give you money it is income, period. The only way it is exempt is if there is an IRS disclosure specific to that incentive. Anything else is just interpretation and if subjected to an audit you would be liable for taxes and penalties. When I did all my solar rebates they had specific filing instructions based on the specific rebates. Until the IRS states in writing otherwise it is taxable. This is what an IRS tax specialist told me specifically, Anyone unsure can write the IRS for a written answer.

So if I understand you correctly, you paid taxes, fed and state on your pv system's rebate from your utility?

I did not pay taxes on anything that is exempt but you muse reduce the system incentive basis by the refunds you received I believe. The rules are clearly stated and I filed based on the rules. I use the tax code to my full advantage and I'm not one to fret over UL listings or permits for an EVSE either. Based on my business structure I don't plan to pay a penny for my EVSE.

 

[Gonewild]

You could have claimed the electric company rebate as income and then take the 30% off the total cost. That works out better then deducting the rebate then -30%.

 

[EVDRIVER]

You could have claimed the electric company rebate as income and then take the 30% off the total cost. That works out better then deducting the rebate then -30%.

Yes, I believe that is what I did if I recall, it is more effective.

 

[LEAFfan]

You could have claimed the electric company rebate as income and then take the 30% off the total cost. That works out better then deducting the rebate then -30%.

Yes, I believe that is what I did if I recall, it is more effective.

That's what I'm going to do too even though our utility says you have to deduct their rebate first...they're mistaken. A friend of mine showed me the IRS ruling.

 

[EVDRIVER]

You could have claimed the electric company rebate as income and then take the 30% off the total cost. That works out better then deducting the rebate then -30%.

Yes, I believe that is what I did if I recall, it is more effective.

That's what I'm going to do too even though our utility says you have to deduct their rebate first...they're mistaken. A friend of mine showed me the IRS ruling.

Only the IRS can offer the rulings. If claim it as income then it is not backed out, which is logical. Just like you must claim a CA state tax refund on your federal return as income because it was previously used as a deduction.

 

[EVDRIVER]

This is the position I will take. I will not claim the $5K as there is no 1099 and the IRS has no answer. A roll of the dice.

 

[smkettner]

This is the position I will take. I will not claim the $5K as there is no 1099 and the IRS has no answer. A roll of the dice.

I agree. If it was to be taxable the IRS would certainly ask the agency to send 1099s.

 

[mwalsh]

I will invoke my 5th Amendment right to remain silent.

 

[palmermd]

I will invoke my 5th Amendment right to remain silent.

Silent!!! What about the blind folks. Nobody is allowed to be silent.

 

[EVDRIVER]

This is the position I will take. I will not claim the $5K as there is no 1099 and the IRS has no answer. A roll of the dice.

I agree. If it was to be taxable the IRS would certainly ask the agency to send 1099s.

1099 is to insure the issuer get it reported and gives them proof. I 1099 people al the time and vice versa so I can document the payment I will deduct. As far as the IRS is concerned, everything is income and you must claim it unless there is a documented reason not to. There are 1099 requirements for issuers though. I must 1099 to get certain deductions documented as a business.

 

[johnr]

Interestingly, on the IRS website only Tesla and Coda (yes, Coda!) are included as eligible for the $7500 credit currently. Nissan Leaf is not yet on their list.

http://www.irs.gov/businesses/article/0,,id=219867,00.html