IRS Transition rule guidance changed

[Dark-Fx]

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.

If you are trying to claim the credit under the transition rule, it will apply to your 2022 tax liability.

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[kyunam]

Someone say YES or NO please:

- I have a BPA
- R1S was delivered in 1/31/2023
- I didn't file taxes yet

So, even though, I purchased it in 2023, I can clain $7500 when I file the income tax for 2022 ?

 

[Jack Smoke]

Man, Not sure what I can do in my situation. I signed my BPA December 11. Could’ve taken delivery on 12/29 but a work trip came up. I could’ve had my wife take “ delivery“ and leave it Normal until I got back. But, I called my accountant and he said as long as I signed my BPA in 2022, I was good so I pushed it back to 1/15/23. Looks like I’m hosed until next year.

 

[Jack Smoke]

Someone say YES or NO please:

- I have a BPA
- R1S was delivered in 1/31/2023
- I didn't file taxes yet

So, even though, I purchased it in 2023, I can clain $7500 when I file the income tax for 2022 ?

Depends on the date of BPA.

Pre 8/16/2022 Yes you can file.

BPA signed after 817/22 No

At least that’s my understanding. I have questions as to what constitutes a BPA though

 

[R1Sky Business]

Depends on the date of BPA.

Pre 8/16/2022 Yes you can file.

BPA signed after 817/22 No

At least that’s my understanding. I have questions as to what constitutes a BPA though

"Sustained"

 

[BrentInCO]

I clicked on the link and have read the IRS guidance myself. It clearly says if delivery was in 2023, then you follow the 2023 rules (which has a link), including AGI thresholds. Based on the IRS guidance, and common sense, I don’t understand how anyone could interpret a person could claim a tax credit in 2022 for a vehicle delivered in 2023. Am I missing something?

 

[JerseyGreens]

I clicked on the link and have read the IRS guidance myself. It clearly says if delivery was in 2023, then you follow the 2023 rules (which has a link), including AGI thresholds. Based on the IRS guidance, and common sense, I don’t understand how anyone could interpret a person could claim a tax credit in 2022 for a vehicle delivered in 2023. Am I missing something?

The order of paragraphs matters in this case. The first one refers to those of us who signed BPAs. The second paragraph is assuming those folks who didn't sign BPAs prior to 8/16/22 but take delivery in 2023.

 

[SANZC02]

Looking at your pre-order date...did you sign a BPA? If you did, none of those requirements you mentioned matter.

I did sign the agreement but am hedging my bet.

Being retired it is easy enough to control my AGI and the rest of the stuff already meets the requirements for January. Why chance if the 100 dollar risk limit on the deposit will be enough to have the agreement qualify.

 

[kyunam]

Depends on the date of BPA.

Pre 8/16/2022 Yes you can file.

BPA signed after 817/22 No

At least that’s my understanding. I have questions as to what constitutes a BPA though

God Bless America

 

[EarlyAdptr]

Unfortunately, the OP didn't post the full text in the related section. Based on the full text, I'm not sure how to think about this. Here's the full text:

Purchase date vs. delivery date
If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules. To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return.

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.



The bold there is on the IRS site (not mine). Seems to me what they're saying is if you took delivery in 2023 - you have to go by the new rules. Are others interpreting it differently? If so, how / why?

I wish they could have been clearer in that second paragraph and basically started by saying "if you didn't enter into a written binding contract, and you purchased the vehicle between ...." that would have been very clear: 1st paragraph for binding contract holders, 2nd paragraph without it.

 

[tren01t]

You are absolutely right, I will go balls deep now lol!

Ahhh yeah! Love turbo tax and amending the return was easy peasy.
Amended return was accepted by the IRS so here we go. Gigitty, Gigitty, Gigitty......
Can I get an "Ai Carumba!"

 

[DTown3011]

Unfortunately, the OP didn't post the full text in the related section. Based on the full text, I'm not sure how to think about this. Here's the full text:

Purchase date vs. delivery date
If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules. To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return.

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.

I like this new update. Anyone that signed a BPA didn’t purchase a vehicle between AUG 16 and Dec 31. It was purchased BEFORE Aug 16. Which means this first paragraph applies.

I will be claiming in 2022 which is great news!

 

[freshpow]

Unfortunately, the OP didn't post the full text in the related section. Based on the full text, I'm not sure how to think about this. Here's the full text:

Purchase date vs. delivery date
If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules. To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return.

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.



The bold there is on the IRS site (not mine). Seems to me what they're saying is if you took delivery in 2023 - you have to go by the new rules. Are others interpreting it differently? If so, how / why?

I wish they could have been clearer in that second paragraph and basically started by saying "if you didn't enter into a written binding contract, and you purchased the vehicle between ...." that would have been very clear: 1st paragraph for binding contract holders, 2nd paragraph without it.

This was addressed previously in this thread and it’s sitting right there in the text you included. See underlined below:

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.

If you signed a BPA before 8/16, you did not purchase a vehicle between August 16, 2022 and December 31, 2022. The second half of the sentence therefore doesn’t apply.

 

[R1Sky Business]

This was addressed previously in this thread and it’s sitting right there in the text you included. See underlined below:

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.

If you signed a BPA before 8/16, you did not purchase a vehicle between August 16, 2022 and December 31, 2022. The second half of the sentence therefore doesn’t apply.

Finally some good news

 

[ImAI]

Unfortunately, the OP didn't post the full text in the related section. Based on the full text, I'm not sure how to think about this. Here's the full text:

Purchase date vs. delivery date
If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules. To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return.

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.



The bold there is on the IRS site (not mine). Seems to me what they're saying is if you took delivery in 2023 - you have to go by the new rules. Are others interpreting it differently? If so, how / why?

I wish they could have been clearer in that second paragraph and basically started by saying "if you didn't enter into a written binding contract, and you purchased the vehicle between ...." that would have been very clear: 1st paragraph for binding contract holders, 2nd paragraph without it.

no, that is not how IRS rules work.
If the first paragraph applies, as it does in my case, i entered into a binding contract to buy before August 16, 2022 , i can stop reading the rest.

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