IRS Transition rule guidance changed

[Dark-Fx]

Of course for Rivians delivered at any time in 2022, buyers are eligible for the $7500 tax credit without the binding purchase agreement. The only qualification limit in the Inflation Reduction Act’s EV tax credit that went into effect in 2022 was the domestic vehicle assembly requirement. The income, MSRP cap, and battery-related stuff all kicks in in 2023.

I took two credits in 2018 but it's looking like it could be up to four on my 2022 taxes now.

Sponsored

 

[foxerson]

Thank you @Dark-Fx for catching this! I had resigned myself to missing out on the credit after talking with my tax preparer last month. Now I have a glimmer of hope.

This is the second piece of good news for today. The first being that my truck has finally arrived and delivery is scheduled for next Wednesday.

 

[tren01t]

Of course for Rivians delivered at any time in 2022, buyers are eligible for the $7500 tax credit without the binding purchase agreement. The only qualification limit in the Inflation Reduction Act’s EV tax credit that went into effect in 2022 was the domestic vehicle assembly requirement. The income, MSRP cap, and battery-related stuff all kicks in in 2023.

Thanks Dark-fx for the heads up!
Well, I signed the BPA last year on 08/10/22, took delivery on 02/25/2023 and have already filed my 2022 Federal taxes and got a refund last week. So either I could amend my 2022 taxes or go balls deep for 2023.

 

[Jac]

Thanks Dark-fx for the heads up!
Well, I signed the BPA last year on 08/10/22, took delivery on 02/25/2023 and have already filed my 2022 Federal taxes and got a refund last week. So either I could amend my 2022 taxes or go balls deep for 2023.

If you had at least $7500 in tax liability in 2022 why not amend your 2022 return and get $7500 of your tax paid refunded?

 

[tren01t]

If you had at least $7500 in tax liability in 2022 why not amend your 2022 return and get $7500 of your tax paid refunded?

You are absolutely right, I will go balls deep now lol!

 

[SASSquatch]

That’s going to make people happy.

And Squatches. Don't forget the Squatches!!

 

[Autolycus]

This guidance is in line with the actual text of the statute which says you deem the date of purchase to be the day before the IRA was enacted. (For those who had a BPA and want to use the pre-IRA rules)

 

[sub]

This guidance is in line with the actual text of the statute which says you deem the date of purchase to be the day before the IRA was enacted. (For those who had a BPA and want to use the pre-IRA rules)

I agree. Filing an amendment for 2022 after delivery has been my plan all along.

 

[COdogman]

And Squatches. Don't forget the Squatches!!

I just assumed Squatches are always happy. Out there living your best life, scaring the shit out of hikers and campers

 

[Jac]

OMG, I might actually be able to put the reinforced underbody shield back into my configuration even though it pushes me just over the new law’s MSRP cap — and still be eligible for a $7500 tax credit on an amended 2022 tax return. I’m waiting to pull that trigger because I can’t stand being in “processing estimate” purgatory. ?

 

[R1Sky Business]

Looking at your pre-order date...did you sign a BPA? If you did, none of those requirements you mentioned matter.

Good eye

 

[Dark-Fx]

This guidance is in line with the actual text of the statute which says you deem the date of purchase to be the day before the IRA was enacted. (For those who had a BPA and want to use the pre-IRA rules)

Yeah, it's just strange to me that they are doing it this way. Purchases affecting the previous years taxes isn't exactly normal.

 

[R1Sky Business]

Wow. Good catch! I'm not going to pop the champagne yet but note that they removed the language that said "delivery before 12/31/2022". That appears to be good news for those of us with BPAs who will be taking delivery this year and beyond!

Edit: I'm ready to pop the champagne.

Champagne ? ? ?

 

[R1Sky Business]

Wow, I had mentally written this off, but maybe it's actually going to happen. I have to say, that really makes my overall Rivian purchase price quite attractive.

Mentally back on....

 

[R1Sky Business]

Yeah, I'm one of them...my business taxes are done, but personal are being worked on so I'm hoping the credit is real and I'll see it on my return.

Consider it a done deal.

Sponsored