Can I delay my Rivian delivery

[irvineboy]

@Dark-Fx so the question is, if I take delivery in Jan or Feb 2024 and I have not filed my 2023 taxes, how will they know if I exceed the income limit for the 2024 new rules?

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[Dark-Fx]

@Dark-Fx so the question is, if I take delivery in Jan or Feb 2024 and I have not filed my 2023 taxes, how will they know if I exceed the income limit for the 2024 new rules?

I believe if you qualify during 2023 it still counts for 2024. But I am not a tax professional and I would suggest you ask yours.

 

[Joe Hoffman]

I think this is being overcomplicated.
If you've signed the binding agreement, then your life is simple. Amend your 2022 return AFTER you take delivery.

Income limits do not apply.
Manufacturing Requirements (Battery material source) do not apply.
MSRP limits do not apply.

You cannot apply the $7500 to the purchase price to reduce sales tax liability.
Date of delivery does not matter. What matters is completing the IRS form according to the IRS guidance. According to IRS guidance, put Aug 15, 2022 as the "Date placed in Service" on IRS form 8936.

Rivian sent out an email to all existing order holders with these IRS Guidance details on March 8, 2023. Happy to post a copy if you can't find yours.

 

[TollKeeper]

I am also in the boat of wanting to delay delivery for a different reason. Colorado's law for REBATE is date of actual possession. Not of binding contract. So its a valid question.

 

[irvineboy]

I think this is being overcomplicated.
If you've signed the binding agreement, then your life is simple. Amend your 2022 return AFTER you take delivery.

Income limits do not apply.
Manufacturing Requirements (Battery material source) do not apply.
MSRP limits do not apply.

You cannot apply the $7500 to the purchase price to reduce sales tax liability.
Date of delivery does not matter. What matters is completing the IRS form according to the IRS guidance. According to IRS guidance, put Aug 15, 2022 as the "Date placed in Service" on IRS form 8936.

Rivian sent out an email to all existing order holders with these IRS Guidance details on March 8, 2023. Happy to post a copy if you can't find yours.

@Joe Hoffman was not trying to make it complicated. Just understand since I am close to the Jan 1, 2024 delivery date. Rivian says I may be able to delay delivery from Nov/Dec 2023 until Jan 2024 if I want to. If I could reduce the vehicle price by $7500 at the point of sale vs having to amend my 2022 taxes and then having to wait a year to get my $7,500 refund, why not? I’m sure I will still have to pay taxes on the original vehicle price but reducing sales price by $7,500 at point of sale is preferable than waiting to receive refund. Rivian guide isn’t sure if by signing the binding agreement, I am locked in and have to amend 2022. I thought they would know the answer to this. But like @Dark-Fx mentions, if I qualify under both, I should be able to choose which one I want. I think most buyers would want to go with the newer 2024 EV rules assuming they qualify under the income limits. Which still no one has given a definite answer yet.

 

[Dark-Fx]

@Joe Hoffman was not trying to make it complicated. Just understand since I am close to the Jan 1, 2024 delivery date. Rivian says I may be able to delay delivery from Nov/Dec 2023 until Jan 2024 if I want to. If I could reduce the vehicle price by $7500 at the point of sale vs having to amend my 2022 taxes and then having to wait a year to get my $7,500 refund, why not? I’m sure I will still have to pay taxes on the original vehicle price but reducing sales price by $7,500 at point of sale is preferable than waiting to receive refund. Rivian guide isn’t sure if by signing the binding agreement, I am locked in and have to amend 2022. I thought they would know the answer to this. But like @Dark-Fx mentions, if I qualify under both, I should be able to choose which one I want. I think most buyers would want to go with the newer 2024 EV rules assuming they qualify under the income limits. Which still no one has given a definite answer yet.

If you take a credit you don't qualify for, the IRS is going to expect that money back, likely with penalties. That's basically what it comes down to.

 

[Joe Hoffman]

I don't think you want to try to use the 2024 rules. Those rules put restrictions on the EV rebate.
Purchase price has to be less than $80k.
Battery components must comply with certain source guidelines.
Income limits apply.

I'm guessing the first two will make the 2024 rules undesirable to you.
I'd advise you to stick with the 2022 ammendment technique.

Certainly check with Rivian AND a tax advisor. I only play one on TV.

 

[irvineboy]

I was luck to have the price locked in. So it is under $80k. The outstanding unknown is the income limits. If AGI is based on 2023 income, which I think it is and no one has confirmed or denied, then it will be known when I do my 2023 taxes. Good call on the battery sourcing requirements. Just out of curiosity, does the battery sourcing have to be 50% sourced from USA? And does Rivian comply?

 

[Joe Hoffman]

If you have the early price lock, then income limits and battery source does not apply.
You get the full $7500 when you amend your 2022 return.

 

[Kenmecca]

I think this is being overcomplicated.
If you've signed the binding agreement, then your life is simple. Amend your 2022 return AFTER you take delivery.

Income limits do not apply.
Manufacturing Requirements (Battery material source) do not apply.
MSRP limits do not apply.

You cannot apply the $7500 to the purchase price to reduce sales tax liability.
Date of delivery does not matter. What matters is completing the IRS form according to the IRS guidance. According to IRS guidance, put Aug 15, 2022 as the "Date placed in Service" on IRS form 8936.

Rivian sent out an email to all existing order holders with these IRS Guidance details on March 8, 2023. Happy to post a copy if you can't find yours.

I signed the BA in Aug 2022 and purchased in Mar 2023. I amended my 2022 taxes using the above guidance and got my $7500. I had to send links of this forum and IRS to my accountant as she was not aware of all these details amazingly.

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