DeafPug
Well-Known Member
For buyers that think they don't have enough tax liability to take full advantage of the $7,500 federal tax credit for an EV purchase, one way to artificially increase your tax liability is to do a Traditional IRA to Roth IRA conversion. You need to do this during the calendar year for your tax year (conversions have a Dec 31 cutoff, not the Apr 15 cutoff for IRA contributions), so some guesses will have to be made as to how much to convert without conversion so much that you would have to pay taxes. This is a way that many people could artificially inflate their tax liability if desired. The advantage of doing this conversion to inflate your tax liability is that you wouldn't pay taxes now (absorb some of the excess tax credit that you couldn't normally claim) or later (withdraw money after age 59.5 from a Roth IRA).
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