Good Bye $7,500 tax credit!

[Torv]

Even simpler than that. The credit goes to the leasing company, not the lessee.

Tesla used to just plain pocket it on leases, then they changed to a slightly different scheme where they increase the residual value of the car by the rebate amount, which means that they got to charge interest on the $7,500 for the entire duration of the lease, and if you decided to buy the car at the end, you essentially had to pay them back the $7,500 (via the increased residual value).

All that said, I wonder how the latest government grant (it's not longer a tax credit) is going to work for leases, since every leasing company makes more than the cap, meaning they would not qualify to claim the rebates as they do today.

Tesla’s business practices are soooo sleazy.

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[whitex]

I follow the Rivian group on FB. A poster just put up his email he received from Rivian. They are offering a written binding contract for him to sign ($100 of his $1,000 deposit is non-refundable upon signing) to preserve his tax credit. Photos from Rivian FB Group from Kevin KJ.

It seems like something Elon would do, except of course Tesla's don't qualify for the legacy credit. If they did, Tesla would be converting all reservations to binding contracts, Cybertruck, Roadster, everything.

It would be nice if Porsche did something like this, however this needed to be thought out implemented in a matter of days, which is an unattainable warp speed to any legacy automakers. I'm guessing they'd need at least 6 months, maybe a year (which of course would be useless). Let's see how long it takes Porsche to enable Matrix headlights in the US, now that they've been legal for few months already.

 

[bergs]

i asked my SA if i could convert my refundable deposit from jan 2022 for a GTS ST to a binding contract. he said sorry, we cant enter a contract unless the vehicle has been invoiced.

 

[whitex]

i asked my SA if i could convert my refundable deposit from jan 2022 for a GTS ST to a binding contract. he said sorry, we cant enter a contract unless the vehicle has been invoiced.

I suspect they cannot enter a binding contract because they have no clue when you'll be getting the allocation, nor what price you will have to pay. You would not want to sign a binding contract that says "I will pay market price as determined by the dealer" and they don't want to sign a binding contract at today's prices. Even if you signed an open ended binding contract, then the dealer can just raise the price above any other dealer in the area, because they know you will get $7,500 back if you buy from them, and you will leave them the deposit and forgo $7,500 credit if you go with anyone else. So as long as they raise the price less than ($7,500+your_deposit_amount), you come ahead buying from them, rather than from another dealer with a price cheaper by less than ($7,500+your_deposit_amount).

 

[NewPdude]

Despite reading earlier that the new law was going to change the Tax Credit but anyone who bought an EV would be OK as long as the purchase was made prior to 1/1/23… My SA just called me this afternoon (8/10) and urged me to get in to the dealership to complete the transaction paperwork right away so I could still claim the tax credit. My pickup was scheduled for Friday 8/12 after getting PPF, Tint, Ceramic coating. Not sure who is right here…

 

[NuJerzPorsche]

Despite reading earlier that the new law was going to change the Tax Credit but anyone who bought an EV would be OK as long as the purchase was made prior to 1/1/23… My SA just called me this afternoon (8/10) and urged me to get in to the dealership to complete the transaction paperwork right away so I could still claim the tax credit. My pickup was scheduled for Friday 8/12 after getting PPF, Tint, Ceramic coating. Not sure who is right here…

I mean whats the rush. Your about to take delivery and pickup anyways and qualify well before the cut off date.

 

[TaycanHero]

I work 60-80 hours weeks. I pay over 50% of my income to the government. The one time I get a tax break that actually benefits me, I'm sure as shit going to claim it. If that's an extra $7500 that won't go towards another endless war, that's just gravy.

Why I went self-employed in the end.

If you can, perhaps move to a State where tax isn't as punitive. No one deserves to be robbed by their government and have hard work punished.

 

[CarbonTax]

Why I went self-employed in the end.

If you can, perhaps move to a State where tax isn't as punitive. No one deserves to be robbed by their government and have hard work punished.

If I was paying 50% in taxes, I'd just find a better tax accountant

 

[TaycanHero]

If I was paying 50% in taxes, I'd just find a better tax accountant

Often it isn't that simple or you bend the rules enough that one future change completely screws up all your tax planning, or you even end up on the wrong side of the law.

The best solution is offshore your business, or start a digital business and establish it abroad with favourable or 0% corp tax, and ideally 0% divi tax.

Where you are perm somewhere, the only solution is to up sticks and leave the country, though even that is almost impossible for some citizens, like those in the USA! Uncle Sam must take his slice.

They should have a flat 10% tax on everything, or even abolish it. It was introduced in 1913 to pay for a war and then of course... Never rescinded! Even corp tax is a very, very recent thing.

If they can print money to infinity, why taxation is even still a thing is the clearest indication it exists purely to control the population.

Society would be far more productive, wealthier and happier if there was no tax, but instead wealthier individuals were encouraged to spend 10% of their income on good causes.

Would also drastically reduce wars and other curious events that seem to have an ulterior motive behind them linked to money and power that ultimately the tax system feeds..............

 

[PDACPA]

i asked my SA if i could convert my refundable deposit from jan 2022 for a GTS ST to a binding contract. he said sorry, we cant enter a contract unless the vehicle has been invoiced.

Better hope the car arrives before Biden gets the bill for signing or no $7,500 tax credit.

 

[PDACPA]

Despite reading earlier that the new law was going to change the Tax Credit but anyone who bought an EV would be OK as long as the purchase was made prior to 1/1/23… My SA just called me this afternoon (8/10) and urged me to get in to the dealership to complete the transaction paperwork right away so I could still claim the tax credit. My pickup was scheduled for Friday 8/12 after getting PPF, Tint, Ceramic coating. Not sure who is right here…

My bad on that. Get the transaction complete. The Senate put language that says to get the $7,500 credit under the old rule, you must have a binding contract before Biden signs the bill.

 

[PDACPA]

I mean whats the rush. Your about to take delivery and pickup anyways and qualify well before the cut off date.

The cut off date is the date Biden signs it into law. Senate sent to House and if House passes, it goes to Biden. He wants this passed to show they did something for the mid-terms so he will sign quickly.

 

[NuJerzPorsche]

The cut off date is the date Biden signs it into law. Senate sent to House and if House passes, it goes to Biden. He wants this passed to show they did something for the mid-terms so he will sign quickly.

makes sense then yeah I’d get it done asap

 

[PDACPA]

Often it isn't that simple or you bend the rules enough that one future change completely screws up all your tax planning, or you even end up on the wrong side of the law.

The best solution is offshore your business, or start a digital business and establish it abroad with favourable or 0% corp tax, and ideally 0% divi tax.

Where you are perm somewhere, the only solution is to up sticks and leave the country, though even that is almost impossible for some citizens, like those in the USA! Uncle Sam must take his slice.

They should have a flat 10% tax on everything, or even abolish it. It was introduced in 1913 to pay for a war and then of course... Never rescinded! Even corp tax is a very, very recent thing.

If they can print money to infinity, why taxation is even still a thing is the clearest indication it exists purely to control the population.

Society would be far more productive, wealthier and happier if there was no tax, but instead wealthier individuals were encouraged to spend 10% of their income on good causes.

Would also drastically reduce wars and other curious events that seem to have an ulterior motive behind them linked to money and power that ultimately the tax system feeds..............

Just a reminder, as a resident of the USA you must report your "worldwide income."

 

[TaycanHero]

Just a reminder, as a resident of the USA you must report your "worldwide income."

Of course, and I mentioned that.

Why I find the idea of US citizenship bittersweet!

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