Good Bye $7,500 tax credit!

[Fish Fingers]

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

As someone in this space in the UK I can 100% verify this.

FATCA regulations mean we dont/cant advise clients with even dual US citizenship.
And most product providers (eg platforms) will not accept any US clients/joint US clients.

And finally, our PI insurers refuse point blank to insure us for any US or joint US citizen business.

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[TieCon]

My dealer said the deposit binder will work ..

I sure hope so. Last thing I’d want is for it to be binding per dealer but not fit the fine print per the government.

 

[whitex]

My dealer said the deposit binder will work ..

Are they willing to put that in writing with a stipulation that if IRS rejects the claim, they will cover the $7,500 out of their end?

 

[most_vexing_parse]

My dealer said the deposit binder will work ..

My dealer said the non-refundable deposit binder I had would not work, because it’s not for an actual car, but I executed a signed buyers order (the key is including VIN, etc.) with him today which he said would be sufficient. I am also discussing with my accountant to be extra sure, but feeling okay about it now.

 

[Atipical]

Wait so we need a VIN in order for the deposit order to be legit?

 

[Atipical]

My dealer said the non-refundable deposit binder I had would not work, because it’s not for an actual car, but I executed a signed buyers order (the key is including VIN, etc.) with him today which he said would be sufficient. I am also discussing with my accountant to be extra sure, but feeling okay about it now.

For those whose car is not yet produced (ie. me) would it be possible to use the non refundable deposit form, and then retroactively add the VIN once the car is produced? The car should be produced in 3 weeks.

 

[fgwinn]

Wait so we need a VIN in order for the deposit order to be legit?

Very unlikely. A VIN has nothing to do with making the agreement a "written binding contract to purchase". If the dealer offers to sell you a car, you accept, both parties provide consideration, both parties intend to be legally bound, and both parties are legal entities (i.e. not a minor) then you have a binding contract. Your consideration is the promise to pay for the car when it is delivered.

 

[most_vexing_parse]

Wait so we need a VIN in order for the deposit order to be legit?

That’s what my SA said. Luckily, I have one, so he was able to produce a BO for me that would be valid for the purpose here.

 

[TieCon]

Tough. Need some official guidance from both Porsche and how the government is going to define this.

 

[babaloo]

Wait so we need a VIN in order for the deposit order to be legit?

I just asked my SA the VIN question

Are they willing to put that in writing with a stipulation that if IRS rejects the claim, they will cover the $7,500 out of their end?

But let's be honest - there is no way a dealer that they would be liable for the 7500. There are too many unknowns.

It is a risk that each one of us has to decide on their path..

 

[whitex]

But let's be honest - there is no way a dealer that they would be liable for the 7500. There are too many unknowns.

It is a risk that each one of us has to decide on their path..

Exactly, which means what your dealer says about whether or not the agreement will or will not qualify is inconsequential and irrelevant - worth about as much as a comment from a random internet user.

 

[babaloo]

an update from my SA:

was informed today that the $7500 will not apply to Leased vehicles any longer once signed off by President.

it may apply later for purchase for those claiming on income tax credit????

 

[whan]

Spoke to my dealer today - reviewed the documents I signed and have the order form from when I ordered, as well as an invoice for the $10k deposit that says non-refundable as my build locked. For now, I've decided this is sufficient to try to still gain the $7.5k credit

At least Rivian and the other companies are using the same playbook with a non-refundable deposit to try to qualify for the credit. They note that it's not guaranteed to work of course, but I bet they've had their lawyer look through and decided this is the best solution for now that maximizes chances

From a layman's perspective, it makes sense. The spirit of the law is to allow anyone who made a serious attempt to order a vehicle, prior to the change, to still qualify. When it comes to tax time, I'd make the argument that $10k nonrefundable is a meaningful deposit and pretty binding to lose that if I don't end up buying the car

 

[Atipical]

I got my signed paperwork today for my 7.5k non refundable deposit along with the build sheet and full purchase price. If that's not enough then I don’t really know what is.

 

[Superrat]

Are WE seriously putting in that much the time and effort to figure out how to squeeze out a
$ 7500 rebate on a 120K car?
Maybe those that aren't as well off as us could use the tax break more than most of us that can afford a 120K EV.... over a Hyundai IonicQ5, MachE! Just a thought....

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