IRS Transition rule guidance changed

[Dark-Fx]

Am I missing something... there is still this statement below the purchase date section on IRS page

If you purchased a vehicle between August 16, 2022 and December 31, 2022 but don't take delivery of the vehicle until 2023, see Credit for New Clean Vehicles Purchased in 2023 and After.

Is August 15, 2022 between August 16, 2022 and December 31, 2022 ?

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[Hayden123982]

Is August 15, 2022 between August 16, 2022 and December 31, 2022 ?

Ah I see, I was reading that as a purchasing agreement. Welll now I just need turbo to figure their stuff out cause it is hard stopping me

 

[Hayden123982]

To be fair, the turbo tax folks are the ones telling me it still does not qualify

 

[Dark-Fx]

Ah I see, I was reading that as a purchasing agreement. Welll now I just need turbo to figure their stuff out cause it is hard stopping me

The second paragraph is still under the heading of explaining the difference between purchase and delivery, but has nothing to do with having a binding contract. I'd probably reach out to turbotax to tell them to fix their shit if I were using it.

 

[SeaGeo]

Ah I see, I was reading that as a purchasing agreement. Welll now I just need turbo to figure their stuff out cause it is hard stopping me

To be fair, the turbo tax folks are the ones telling me it still does not qualify

What's the hard stop from turbotax?

 

[Hayden123982]

"The Date Placed in Service must be in 2022 and no earlier than the Date Acquired. You can remove this vehicle if it was not placed in service in 2022"

But I found this on the instruction page from IRS regarding the "Date Placed in Service " line:
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.

 

[Hayden123982]

"The Date Placed in Service must be in 2022 and no earlier than the Date Acquired. You can remove this vehicle if it was not placed in service in 2022"

But I found this on the instruction page from IRS regarding the "Date Placed in Service " line:
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.

This still does not solve the Date Acquired being earlier than the Date Placed in Service, but Im thinking that the solution may be to use 08/15/22 for both

 

[freshpow]

This still does not solve the Date Acquired being earlier than the Date Placed in Service, but Im thinking that the solution may be to use 08/15/22 for both

I am not a CPA but I would use the date on your BPA as "Date Acquired" and 8/15/22 as the "Date Placed in Service".

 

[Gavinmcc]

If I had known this in December, I might have waited instead of taking one from the shop. My build was going to be in January, but I got mine in Dec. But that month sooner insured the rebate, and the build I picked was pretty close to what I wanted.

Not that I'm unhappy...I got my ride sooner and I'm loving it.

 

[RivianXpress]

I'm sorry maybe I'm just dense but how does this affect:

1. Reservation holders with signed BPA's in Aug 2022 (Ex. MaxPack R1T, etc) that have not taken delivery yet
- do these people have to claim the deduction in tax year 2022
- These people can claim the deduction (TY2022) only after delivery
- Is there an option to claim the deduction in tax year 2023
- Does it matter when the vehicle is delivered at all (2024 for some folks)

I see lot's of joy on this thread but assume this is mainly from those that took delivery in 2023 - ie the new details allow them to claim the credit in their 2022 tax return.

Thanks in advance

 

[electricboogaloo]

What if you have a BPA and don't take delivery until 2024? Would Rivian give the credit at point of sale?

 

[Dark-Fx]

1. Reservation holders with signed BPA's in Aug 2022 (Ex. MaxPack R1T, etc) that have not taken delivery yet
- do these people have to claim the deduction in tax year 2022

Yes

- These people can claim the deduction (TY2022) only after delivery

Yes

- Is there an option to claim the deduction in tax year 2023

Only if you convince Rivian to sell you the vehicle for less than 80,000 and your AGI is low enough that you qualify under the IRA. It's also possible to qualify for the commercial use credit but that's not something I will elaborate on.

- Does it matter when the vehicle is delivered at all (2024 for some folks)

No, 2024 and later will still get the credit as of the current guidance. It will still apply to your 2022 tax year.

 

[RivianXpress]

Yes

Yes

Only if you convince Rivian to sell you the vehicle for less than 80,000 and your AGI is low enough that you qualify under the IRA. It's also possible to qualify for the commercial use credit but that's not something I will elaborate on.

No, 2024 and later will still get the credit as of the current guidance. It will still apply to your 2022 tax year.

Damn - I was afraid of that.

I already have two EV credits for 2022 (R1T and lightning) and was tax planning for my MaxPack delivery in 2023 to allow the credit in TY 2023.

 

[NY_Rob]

They have not released the battery component requirements yet so as long as under 80k and AGI limits you should be able to take the 7500 if delivered this year.

That is what I am planning for.

Same here... I exhausted my remaining Solar Credits on my 2022 return, so the R1T (delivered Jan 20th 2023) will go on the 2023 return to maximize the credit.

 

[RivianXpress]

Maybe the MaxPack battery will be an 'option'.... and I'll sneak in under $80K

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