Tax Credit trade in Ariya for Ariya

1692 Views 17 Replies 11 Participants Last post by sandeewilkhu, 4 mo ago

danielfl18

Discussion Starter · 4 mo ago

Hi guys I have a situation, I reserve 2 Ariya just a few moments after the reservation portal opens. At the beginning both was Venture but We decide to go for Evolve and ended changing one just in case that can affect our reservation number or potions in line. We received the call from the dealer that our Venture was available on December 31th. We decide to buy it to make sure we are getting Tax Credits. Now our Evolve is arriving this next Wednesday and we are not sure about a few things.
1-Do we need to register the Car to DMV to qualify for the credit?
2-Anything happens if we trade/sell our Venture before tax season?
3- do we need to wait 3 years for the next tax credit or we are applying for taxes with the old rules?
We know that it’s not possible to get taxes from both vehicles but at least we hope to get the taxes from the Venture.
Hope someone can clarify me this. Thanks to everyone

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dreamerjbt

· #2 · 4 mo ago

Seriously.... I thought even though as day the portal opened reservationist and signing something in hopes of showing that we put $ down on the car, we still we would still not be eligible for any of the tax credits as all parts of this car were made outside of the US.

atreis

· #3 · 4 mo ago

dreamerjbt said:
Seriously.... I thought even though as day the portal opened reservationist and signing something in hopes of showing that we put $ down on the car, we still we would still not be eligible for any of the tax credits as all parts of this car were made outside of the US.

Logically, we SHOULD, but current guidance is not good. Strongly suggest talking to a tax adviser about it.

dreamerjbt

· #4 · 4 mo ago

atreis said:
Logically, we SHOULD, but current guidance is not good. Strongly suggest talking to a tax adviser about it.

Good thing Onhave an appointment with your account on the 30th!

improvius

· #5 · 4 mo ago

It's doubtful that you'll qualify for a tax credit on the Ariya regardless of whatever else you do. You should consult a tax law professional in your state if it's an important factor in your decision to buy or not buy the Ariya.

Reactions: 1

Stercus

· #6 · 4 mo ago

No one is getting the tax credit no matter how much we wish it would be. It's just not going to happen.

Reactions: 1

danielfl18

Discussion Starter · #7 · 4 mo ago

From where I know if I got the car in 2022 with the Binding agreement I should be fine for the Taxes. Hope that works.

Reactions: 2

EarlyEVadopter

· #8 · 4 mo ago

Stercus said:
No one is getting the tax credit no matter how much we wish it would be. It's just not going to happen.

I presume you are a professional tax adviser, yes?

Reactions: 1

Astros

· #9 · 4 mo ago

danielfl18 said:
Hi guys I have a situation, I reserve 2 Ariya just a few moments after the reservation portal opens. At the beginning both was Venture but We decide to go for Evolve and ended changing one just in case that can affect our reservation number or potions in line. We received the call from the dealer that our Venture was available on December 31th. We decide to buy it to make sure we are getting Tax Credits. Now our Evolve is arriving this next Wednesday and we are not sure about a few things.
1-Do we need to register the Car to DMV to qualify for the credit?
2-Anything happens if we trade/sell our Venture before tax season?
3- do we need to wait 3 years for the next tax credit or we are applying for taxes with the old rules?
We know that it’s not possible to get taxes from both vehicles but at least we hope to get the taxes from the Venture.
Hope someone can clarify me this. Thanks to everyone

I don't know about the tax credit for the second car (wish I did), but I can answer your first two questions from experience:
1- Yes, you would need to register your car in order to claim the tax credit. Otherwise to the IRS you are buying it in order to sell it, which is not allowed under either the old rules or the new.
2- You can sell your Venture whenever you like, and it will not affect your tax credit eligibility.
3- I'm not sure I understand this question. Under the old rules you could claim the credit as many times as you liked, even in a single year. Under the new rules, I think there is a limit on the number of times you can claim it in a year, but you are certainly allowed to claim it once each in two successive years. For the used tax credit, there is a limit that the car must be three years old, and can only be claimed once for the used credit in the car's life.

danielfl18

Discussion Starter · #10 · 4 mo ago

Astros said:
I don't know about the tax credit for the second car (wish I did), but I can answer your first two questions from experience:
1- Yes, you would need to register your car in order to claim the tax credit. Otherwise to the IRS you are buying it in order to sell it, which is not allowed under either the old rules or the new.
2- You can sell your Venture whenever you like, and it will not affect your tax credit eligibility.
3- I'm not sure I understand this question. Under the old rules you could claim the credit as many times as you liked, even in a single year. Under the new rules, I think there is a limit on the number of times you can claim it in a year, but you are certainly allowed to claim it once each in two successive years. For the used tax credit, there is a limit that the car must be three years old, and can only be claimed once for the used credit in the car's life.

Thanks so much for responding.

The 3 question is because I saw somewhere that the new tax credit only allows to get the credit once every 3 years. Not sure if that’s correct or not. Thanks.

Astros

· #11 · 4 mo ago

danielfl18 said:
Thanks so much for responding.

The 3 question is because I saw somewhere that the new tax credit only allows to get the credit once every 3 years. Not sure if that’s correct or not. Thanks.

I'm not sure, but you would be claiming the Venture+ under the old rules, so that limit wouldn't apply in any case.

voxel

· #12 · 4 mo ago

danielfl18 said:
From where I know if I got the car in 2022 with the Binding agreement I should be fine for the Taxes. Hope that works.

Hope? You need to speak with a tax advisor.

Binding agreements made with the local Nissan dealer could pass muster. In 2022, I signed detailed factory build orders (with all fees/taxes and out the door price) for a MINI and Solterra - each with a $1K and $2K deposit. I didn't need the price sheet + agreements though because the MINI was delivered in June and I declined the Solterra in December. MINI was known to have part shortages and anything removed would force MINI to discount the MSRP

With Nissan what did we agree too? A trim and color? They could have removed features without changes to the price. How's any of that binding? Nissan can't do direct sales either.

The tax credit was written to provide as few credits as possible - very few cars were eligible in 2022 and in 2023 the IRS restricted the definition of SUV to eliminate all except the 7 seater Model Y and the AWD ID.4. Even if the Ariya was built in the US.. it might not even be considered an SUV and only configs under $55K would qualify for any tax credit.

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dafish

· #13 · 4 mo ago (Edited)

4

Daniel:
A well informed tax advisor could help, but honestly the situation is so fluid and interpretation filled it's difficult. I can say this: From everything I've seen the one you received in 2022 will quality for the "old" tax credits if you have a committment letter, and if you otherwise qualify.

As of this moment my reading of the IRS publications show no vehicle delivered in 2023, regardless of commitment letter, qualifies for the "old" credit. You must comply with the "new" act, and of course no Ariya qualifies. If that fact? Of course not. In fact, there are plenty of conflicting interpretations all from the US gov.

Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service (irs.gov)

Key language:

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That link offers no relief for commitment holders. Is that a mistake? Maybe. Meanwhile Treasury confuses things:

Treasury Releases Initial Information on Electric Vehicle Tax Credit Under Newly Enacted Inflation Reduction Act | U.S. Department of the Treasury

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And, from the FAQ:

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Where it gets interesting is in IRS form 8936, where credit is dependent on "placed into service". The law: ERN22335 (senate.gov), on page 387, defines this to binding contract holders:

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So, do I believe the Law? The Treasury, or the IRS? Clear as mud, right?
It seems to me that if you fill out the 8936 "correctly", and as per law, you're golden. But I sure dunno.

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atreis

· #14 · 4 mo ago

dafish said:
So, do I believe the Law? The Treasury, or the IRS? Clear as mud, right?
It seems to me that if you fill out the 8936 "correctly", and as per law, you're golden. But I sure dunno.

The IRS and Treasury have to obey the law. However, the law has that "at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary's delegate, may prescribe" bit in it, which makes it much murkier.

Reactions: 1

gsharmak

· #15 · 4 mo ago

Speaking on tax credits, the binding agreement that we had signed online, did you guys save a copy of it.
My dealer didn't have any clue when I picked up my Ariya and also the Nissan customer care was of no help on this subject. They say, I should have saved a copy or taken a screenshot while submitting the agreement onlineand advised me to speak to tax advisor on more options around it.
Anyone else facing the same problem.

sandeewilkhu

· #16 · 4 mo ago

Same here, the personal assistant said more than a week they’ll email me a blank one - got nothing, even after asking agian

gsharmak

· #17 · 4 mo ago

sandeewilkhu said:
Same here, the personal assistant said more than a week they’ll email me a blank one - got nothing, even after asking agian

Got this from another discussion

Reactions: 1

sandeewilkhu

· #18 · 4 mo ago

gsharmak said:
Got this from another discussion

Thanks!!!

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