Can I delay my Rivian delivery

[irvineboy]

I read this article

https://cleantechnica.com/2023/10/0...-the-federal-ev-tax-credit-on-january-1-2024/

After waiting and delaying delivery so many times by Rivian, it appears that this time my R1S will be delivered in Nov or Dec 2023. I interpret this article as saying if I get delivery on Jan 1, 2024 or later, they will reduce the price of the vehicle by $7500. I wonder if I still pay tax on the original price or the reduced price of the vehicle?

So if I take delivery in end of this year, that means I have to file it with my 2023 taxes and wait one year to get my $7500 rebate?

Although I don’t understand the discussion about the $7500 going to $3750 due to some battery origins and if that effects Rivian batteries? It said that the Inflation Reduction Act broke the credit into two halves: You can claim $3,750 if at least half of the value of your vehicle's battery components are manufactured or assembled in North America.

You can claim the other $3,750 if at least 40% of critical minerals -- like graphite, lithium and cobalt -- are sourced from the US or a trade partner. Is Rivian all sourced from USA?

I signed the binding agreement with Rivian so I think I’m locked into receiving the full $7500 and not the $3750.

Will Rivian allow me to delay delivery by a couple of months to Jan 2024 so I can take immediate $7500 reduction?

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[irvineboy]

Does the income limit still apply for EV purchased after Jan 1, 2024?

 

[Destreyf]

If you signed the binding agreement, you can only do an ammendment to your 2022 taxes to get the $7500 credit, this is not a rebate and you must have the tax burden/obligation to offset it, you will not be able to carry the full $7500 forward, and the binding agreement will not help with applying the $7500 to purchase price.

Rivian (from my understanding) doesn't meet the full battery sourcing requirements which is why it dropped from $7500 to $3750.

The income limit does still apply to anyone who's not using a binding purchase agreement, the purchase price limitations also still apply.

Additionally, dealers/vendors have to register with the IRS to submit the credit reimbursements, I don't know how quickly Rivian will get their application in to be a qualified vendor, or how it applies to Direct to Consumer sales as the mentions I have seen have all been around dealerships, but admittedly I haven't followed too close.

 

[irvineboy]

So if I signed the binding agreement, which I did, I have to amend my 2022 taxes to get the $7500 and not amend when I actually take delivery (in 2023 if they don't let me delay delivery to 2024)? I don't think I can amend 2022 taxes if I did not take delivery of the vehicle yet. I would think that you amend taxes because you need VIN # on the form 3986, and you amend when you take delivery so the IRS knows that you have purchased your vehicle.

Does signing the binding agreement protect the full $7500 so we are not affected by the $3750 battery sourcing requirements?

 

[Donald Stanfield]

So if I signed the binding agreement, which I did, I have to amend my 2022 taxes to get the $7500 and not amend when I actually take delivery (in 2023 if they don't let me delay delivery to 2024)? I don't think I can amend 2022 taxes if I did not take delivery of the vehicle yet. I would think that you amend taxes because you need VIN # on the form 3986, and you amend when you take delivery so the IRS knows that you have purchased your vehicle.

Does signing the binding agreement protect the full $7500 so we are not affected by the $3750 battery sourcing requirements?

There is no battery source requirements based on the old rules and that's what you'd be using with amending your '22 taxes. So you would get the full 7500. No income limit on the old rules either.

 

[irvineboy]

There are no income limits with signing the binding agreement? Sweet!

but how could I amend 2022 taxes when I haven’t taken delivery? From the irs article below, it says to amend 2022 taxes, you need vin number on the form.
From this link https://www.irs.gov/credits-deducti... claiming a,electric vehicles expired in 2022.



Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your 2022 tax return. You will need to provide your vehicle's VIN.

 

[Destreyf]

Based on my understanding, once you take delivery, you submit the form with your vin and put your "Enter date vehicle was placed in service" as the date you signed the binding agreement.

This binding contract doesn't seem to have an expiration based on what I know, you can ammend your 2022 taxes (that you filed this year) at any point.

The only way to leverage the binding agreement is by ammending your 2022 taxes, so you might need to hire/pay someone to help with that, but it shouldn't be expensive, and will result in you getting that money paid back to you assuming you paid atleast $7500 (or more) in Federal Income Tax (not FICA/State).

 

[irvineboy]

I thought date placed in service would be when you take delivery not when you signed the binding agreement. To clarify, Rivian charged owners $100 to sign the binding agreement right?

I used turbo tax. Anyone amend form 8936 for 2022 using TT?

 

[Christopher]

On the 8936 you enter 08/15/2022 on line 3 for the in service date per instructions.

Line 3
Enter 08/15/2022 if you qualify and elect to apply the
transition rule discussed below.
Transition rule. If you purchased, or entered into a written
binding contract to purchase, a qualified plug-in electric drive
motor vehicle after 2021 and before August 16, 2022, you
may elect to treat such vehicle as having been placed in
service on August 15, 2022, the day before the enactment
date of the Inflation Reduction Act of 2022.

You amend your 2022 return even if you take delivery in 2024 (if you have a binding agreement).

You also can't do this until you take delivery and have possession of the vehicle. Even if you have a VIN from Rivian, don't trust it will be delivered 100% so please wait until you actually have it.

 

[irvineboy]

So let’s say Rivian allowed me to take delivery in Jan 2024. Would I be able to take advantage of the new EV tax rules where the $7500 reduces the cost of the vehicle? Or does the binding agreement make me take the action amending 22 taxes?

 

[Stevetom84]

So let’s say Rivian allowed me to take delivery in Jan 2024. Would I be able to take advantage of the new EV tax rules where the $7500 reduces the cost of the vehicle? Or does the binding agreement make me take the action amending 22 taxes?

I’m not a tax accountant, but I’m 90% sure you will be required to amend your 2022 tax return to get the $7500 and there won’t be any option or ability to take it with the new 2024 rule.

 

[Dark-Fx]

So let’s say Rivian allowed me to take delivery in Jan 2024. Would I be able to take advantage of the new EV tax rules where the $7500 reduces the cost of the vehicle? Or does the binding agreement make me take the action amending 22 taxes?

If you qualify under both of them, you can take either credit.

 

[irvineboy]

I’m assuming you still pay taxes on the original vehicle price, before the $7500 reduction for 2024 rules?

I read that 2024 rules has income limits of $300k agi married filing jointly whereas old rules 2022 amending taxes, doesn’t have income limits. So if you take delivery in 2024, do the income limits go off of 2023 taxe's income? How would they know if you qualify if you didn’t do your 2023 taxes yet and you take delivery in Jan 2024?

 

[irvineboy]

If you qualify under both of them, you can take either credit.

@Dark-Fx do you know since I signed the binding agreement, does that mean I’m under the old rules with no income limitation, and that means even if I take delivery in 2024, I can’t qualify under the new rules (reduce vehicle price by $7500) and be forced to amend my 2022 taxes (wait one year to receive $7500 credit)? I don’t know if the act of signing the binding agreement means you have to go with old rules regardless of when you take delivery?

 

[Dark-Fx]

@Dark-Fx do you know since I signed the binding agreement, does that mean I’m under the old rules with no income limitation, and that means even if I take delivery in 2024, I can’t qualify under the new rules (reduce vehicle price by $7500) and be forced to amend my 2022 taxes (wait one year to receive $7500 credit)? I don’t know if the act of signing the binding agreement means you have to go with old rules regardless of when you take delivery?

If you qualify under both you can take either of them (but not both). If you take the new credit, you are subject to the new rules.

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