It's officially tax time are people going to claim the tax credit from the expired version of the tax code?

[Babyrocko1908]

To be clear, I agree with your interpretation. And, I think it's great that you were successful in getting the credit. To clarify my question, are you aware of anywhere the IRS says exactly what Rivian said in their email? "Taxpayers who took delivery in 2023 or after must use August 155, 2022 as the date placed in service..."? Is that actually in writing anywhere other than in Rivian's email? I can't find it anywhere. Again, I'm trying to build my case with my tax guy.

It doesn't need to be in the IRS' code language. The Transition Rule (which allows folks to use the day before the IRA was passed -- August 15, 2022) is codified in law -- meaning it was passed by both the United States House and Senate and signed into law by the President. The IRS follows the tax code which is derived from codified tax laws like the IRA. But to specifically answer your question, I haven't read the IRS' voluminous tax code and this is a new law so it the IRS' tax code likely hasn't been updated to reflect it yet. That doesn't mean it isn't in effect. The IRA was effective as of August 16, 2022.

 

[Halodde]

OK thanks. It seems odd to me that rivian would put that in their email in quotes implying that they got it directly from the IRS. I feel like I'm missing something. But that's nothing new lol. As always, I appreciate your help!

 

[TRJ_Lucid45]

I used Turbo Tax and had no problem filing my taxes and have received my refund already.

 

[Trekforever]

OK thanks. It seems odd to me that rivian would put that in their email in quotes implying that they got it directly from the IRS. I feel like I'm missing something. But that's nothing new lol. As always, I appreciate your help!

On https://www.irs.gov/instructions/i8936, IRS does have this mentioned:

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.

So if you entered into a written binding contract to purchase before August 16, 2022 - you can treat the vehicle as having been placed in service on August 15, 2022.

 

[Babyrocko1908]

On https://www.irs.gov/instructions/i8936, IRS does have this mentioned:


So if you entered into a written binding contract to purchase before August 16, 2022 - you can treat the vehicle as having been placed in service on August 15, 2022.

Bingo! This is the "layman's" terms of the actual language in the transition rule. I understand legal jargon but the IRS has to make it easy for normal folks to understand. I also list this same easy to understand language in my post from Christmas Eve.

 

[Babyrocko1908]

OK thanks. It seems odd to me that rivian would put that in their email in quotes implying that they got it directly from the IRS. I feel like I'm missing something. But that's nothing new lol. As always, I appreciate your help!

They did essentially. You should be good to go. Tell your tax guy to read the Transition Rule in the IRA if he gives you trouble.

 

[Halodde]

I actually called rivian and asked them. The representative I spoke to who seemed relatively knowledgeable on the subject said that she also could not find that exact quote on the IRS website. So evidently they probably should not have put it in quotes in their email

 

[digiboxer]

I actually called rivian and asked them. The representative I spoke to who seemed relatively knowledgeable on the subject said that she also could not find that exact quote on the IRS website. So evidently they probably should not have put it in quotes in their email

I'm many weeks removed from this topic so forgive me. But when I last looked at it I concluded I didn't qualify for the $7500 tax credit because--even thought I converted to "binding (i.e. made my $1000 non-refundable) on 8/15/22--the IRS had stated in another context that a contract isn't considered "binding" unless the taxpayer stands to lose at least 5% of the purchase price in event of default.

Has this last point been changed/clarified by IRS recently? Or is there some other basis to believe the 5% threshold doesn't apply?

 

[Halodde]

I'm many weeks removed from this topic so forgive me. But when I last looked at it I concluded I didn't qualify for the $7500 tax credit because--even thought I converted to "binding (i.e. made my $1000 non-refundable) on 8/15/22--the IRS had stated in another context that a contract isn't considered "binding" unless the taxpayer stands to lose at least 5% of the purchase price in event of default.

Has this last point been changed/clarified by IRS recently? Or is there some other basis to believe the 5% threshold doesn't apply?

I don't have any specific information on this. But I believe multiple others have submitted for the tax credit and gotten it

 

[EVSRCali]

Yes, I am going to try - since the transition rule in the text of the Inflation Reduction Act allows me to say that the date the car was put into service was the day before the Act was enacted, and therefore the old rules apply. Though the IRS guidance on the transition rule is not clearly worded. However, as many, many pages of posts here show, there is considerable debate on the matter.

If the IRS does not agree with me, I'll pay them the $7500 plus penalty.

What would the worst case penalty be, just in case?

 

[Bobby]

I don't have any specific information on this. But I believe multiple others have submitted for the tax credit and gotten it

FYI: people don't succeed in "getting" the tax credit when they file. Any tax return will be accepted. You can write whatever you want on your taxes, true or false. Much of it is on the honor code, however many returns are machine audited and some are audited by hand. Just because your taxes went through and your refund arrived doesn't mean that you cannot still be audited. If you did something wrong on your taxes, you will owe money, penalties, and interest.

 

[Electrified]

My accountant says the tax credit will be good as my car was delivered in Sept 2022.

 

[Bobby]

My accountant says the tax credit will be good as my car was delivered in Sept 2022.

2022 deliveries are not in question. It’s 2023 folks are worried about. The tax code seems to indicate it will be ok… time will tell.

 

[kirpal]

I am picking up my car tomorrow . I had Fedexed on Tuesday the cashiers check from the bank (auto loan) to the Costa Mesa center to make sure the funds were cleared ( since the name in the check was not exactly how Lucid wanted it— it’s a long story!!). Today, I got the confirmation email that says the payment date as August 11, 2022- the date I entered into the binding contract last year. ( I also have the email saved with $1000 non refundable deposit as well). I am curious to see if anyone else had similar experience?

 

[elin]

my payment date also showed as the day I entered into binding contract (aug 10, 2022)

 

[Babyrocko1908]

I am picking up my car tomorrow . I had Fedexed on Tuesday the cashiers check from the bank (auto loan) to the Costa Mesa center to make sure the funds were cleared ( since the name in the check was not exactly how Lucid wanted it— it’s a long story!!). Today, I got the confirmation email that says the payment date as August 11, 2022- the date I entered into the binding contract last year. ( I also have the email saved with $1000 non refundable deposit as well). I am curious to see if anyone else had similar experience?

Yes. This is correct. This is how Lucid is doing it. You use August 15, 2022 as the date on your taxes for the credit.

Congratulations and Welcome!

 

[Babyrocko1908]

my payment date also showed as the day I entered into binding contract (aug 10, 2022)

 

[Electrified]

2022 deliveries are not in question. It’s 2023 folks are worried about. The tax code seems to indicate it will be ok… time will tell.

I don't see Lucid having a vehicle purchased in 2023 qualifying.

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service

You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

www.irs.gov

 

[Babyrocko1908]

I don't see Lucid having a vehicle purchased in 2023 qualifying.

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service

You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

www.irs.gov

It's not the "purchase date" that's relevant here. It is the date the customer converted their order to a written and binding contract that controls. The Transition Rule grandfathers these contracts. Scroll back through this entire thread for the accurate information.

 

[kirpal]

Yes. This is correct. This is how Lucid is doing it. You use August 15, 2022 as the date on your taxes for the credit.

Congratulations and Welcome!

Thank you. Since I already filed my taxes for this year, I will file an amendment before April 15th. Hopefully, IRS wont mind writing the check to me