IRS Transition rule guidance changed

[R1Sky Business]

This does seem like a departure from the last guidance. I'm taking delivery on Thursday and have a signed BPA.

I'll go ahead and claim it this year. Thank you @Dark-Fx !

I made a lot of charitable donations in 2022...not sure if I'll have $7,500 in tax liability this year but nonetheless this will help!

Keep the crew informed.

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[R1Sky Business]

It was pointed out to me that the IRS changed their 2022 page about the transition rule. It appears as though they expect anyone claiming the tax credit under the transition rule to claim the credit against their 2022 taxes.

https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before

Dark-Fx for Mayor

 

[DuoRivians]

It seems to me that the question remains: what is a significant non-refundable payment? This seems like a necessity for a binding contract:

From the link posted by OP

“What is a written binding contract?

In general, a written binding contract :

is enforceable under state law, based on the state and relevant facts and circumstances, and
does not limit the damages a buyer or seller can receive for a breached contract, such as forfeiting a deposit or paying a pre-determined dollar amount or a percentage of the total contract price for the vehicle.
An indication of a binding contract is if a buyer has made a significant non-refundable deposit or down payment.“

 

[R1Sky Business]

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.

They come in 3s.....keep looking.

 

[R1Sky Business]

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)

Happy Monday everybody!!!!

 

[uthatch]

Ha, I will when the credit is actually accepted.

 

[R1Sky Business]

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. ?

You'll find in in the shop soon

 

[R1Sky Business]

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

Rivian is anything but normal

 

[Autolycus]

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

Still less weird than the 2009 First Time Homebuyers Credit which could be claimed through an amended 2008 return no matter when you bought in 2009.

 

[SASSquatch]

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

Who me????

I'm just a squatch standing in front of a hiker asking them to not post him on the 'Gram.

 

[nicus90]

Hello everyone,
First post here.
I do have a BPA and expecting to take delivery of my R1T somewhere in 2023 will it be possible to file tax credit in 2024 for 2023 but not an amendment for 2022?

 

[Dark-Fx]

Hello everyone,
First post here.
I do have a BPA and expecting to take delivery of my R1T somewhere in 2023 will it be possible to file tax credit in 2024 for 2023 but not an amendment for 2022?

You should be able to amend 2022 electronically in 2024, but in 2025, you'd have to do it by paper.

 

[Keysh2oboy]

Thanks for this update

 

[nicus90]

You should be able to amend 2022 electronically in 2024, but in 2025, you'd have to do it by paper.

interesting, I don't have much liability in 2022 so was looking to create some liability in 2023 and basically file for tax credit in 2024, if that make sense to you.

 

[foxerson]

They come in 3s.....keep looking.

?

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