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Timing of purchase and binding contract and Taxes oh my.

Gavinmcc

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Ok: so I have a question.

I was an Oct to Dec 2022 window. I have not received an updated window, but I’ve been told it likely is pushed to early 2023 since I live in New Mexico (no nearby service center and I am convinced half the US population thinks we are a foreign country).

Now I have signed the binding contract.
So, say I get my R1T in February 2023 before I file my 2022 taxes. Do I claim the tax credit on my 2022 taxes because of the binding contract? Or do I claim the credit on my 2023 taxes (filed in 2024) since the truck is put into service in 2023?
Or does Rivian apply the credit at point of sale in 2023 and takes off the 7,500 directly from list price?

confused in what I swear is one of the 50 states that make up ‘Murica
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ElCapiTan

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In my opinion you file it on your taxes.

In regards to this New Mexico Place... do they sell bacon there?
 

mikehmb

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Ok: so I have a question.

I was an Oct to Dec 2022 window. I have not received an updated window, but I’ve been told it likely is pushed to early 2023 since I live in New Mexico (no nearby service center and I am convinced half the US population thinks we are a foreign country).

Now I have signed the binding contract.
So, say I get my R1T in February 2023 before I file my 2022 taxes. Do I claim the tax credit on my 2022 taxes because of the binding contract? Or do I claim the credit on my 2023 taxes (filed in 2024) since the truck is put into service in 2023?
Or does Rivian apply the credit at point of sale in 2023 and takes off the 7,500 directly from list price?

confused in what I swear is one of the 50 states that make up ‘Murica
You’d be filing it against 2023 but you will be eligible under the waiver-loophole-thing with the binding purchase agreement in 2022.

Also, I am neither a lawyer nor an accountant. I pay a very competent small company to do our taxes every year and it brings me great peace and joy, and who will be the ones that tell me I am either absolutely correct or a total idiot.
 

manitou202

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Honestly my guess is anyone who signs the PBA but takes delivery after filing 2022 taxes will need to file an amended return. I believe the PBA is basically setting the date of the purchase in the 2022, but you aren't taking delivery until a later point. You need the VIN from the delivery to add back to your 2022 return with the PBA signed date as the purchase date.
 

mkg3

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The current D30 tax credit rule says you must put the vehicle in service to qualify for the tax credit.

Unless there is explicit wording to otherwise, the transition rule is allowing you to take the credit under the old law rather than the new, I believe you follow the current existing D30 rules.

In other words, take delivery in 2023 with BPA signed prior to new inflation law passing, you transacted in 2023; thereby, you file in 2024 for 2023 taxes. That's my understanding and what makes sense (though with IRS, nothing ever makes sense but that's another subject all together. :)
 

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rivordel

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It is actually simpler than this: the transition rule treats the in-service date as 2022, if you now have a binding agreement to purchase the vehicle and complete the purchase after 2022 (no matter how late you take delivery of the vehicle). So this means that even if you take delivery in 2024, you took delivery for tax purposes in 2022. So if you've already filed your 2022 return when you take actual delivery, you actually need to amend the return to reflect that the delivery occurred (again, in fictional 2022). Kind of a pain, but if you want your 7500, them's the breaks.
 
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Gavinmcc

Gavinmcc

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But if you receive the truck before you file your taxes, then you claim it without having to file an amended return, right?

Either is fine, but getting that refund in 2023 is nicer than waiting a year. And seems easier if I get R1T in say Feb or March, to wait on filing taxes till then and have it be one and done.

of course best option is Rivian getting me my truck in 2022 :)
 

Donald Stanfield

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But if you receive the truck before you file your taxes, then you claim it without having to file an amended return, right?

Either is fine, but getting that refund in 2023 is nicer than waiting a year. And seems easier if I get R1T in say Feb or March, to wait on filing taxes till then and have it be one and done.

of course best option is Rivian getting me my truck in 2022 :)
Yes if you get it before you file you will not have to amend your return.
 
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Gavinmcc

Gavinmcc

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And I’ve also heard about using it at “point of sale” next year? But that info has been spotty.
 

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And I’ve also heard about using it at “point of sale” next year? But that info has been spotty.
It seems to me the "point of sale" may be tricky, regardless of dealer/manufacturer. Although everyone wants the credit immediately when buying, is the seller going to verify how much the buyer actually qualifies for? It seems to me a lot of customers will claim max credit, and then end up owing more come time to file their taxes. And then they will blame the seller. And if the seller has to pre-qualify you before you buy, I don't want to share all aspects of my taxes with a seller. Maybe someone has already figured out how to do "point of sale" with no potential issues, I just am unaware of it.
 

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goldburger

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You cannot get a tax credit for buying something in 2022 if you bought it in 2023. The tax year is the calendar year, not up to the point you file. The contract isn’t a purchase, it’s a loophole.
 

swhme

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Regardless of tax year, here’s hoping for a NM SC soon!
 

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You cannot get a tax credit for buying something in 2022 if you bought it in 2023. The tax year is the calendar year, not up to the point you file. The contract isn’t a purchase, it’s a loophole.
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Honestly my guess is anyone who signs the PBA but takes delivery after filing 2022 taxes will need to file an amended return. I believe the PBA is basically setting the date of the purchase in the 2022, but you aren't taking delivery until a later point. You need the VIN from the delivery to add back to your 2022 return with the PBA signed date as the purchase date.
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