Do I get 2 Tax Credits if I trade in my Premium for a GT?

[Carlos Kirkconnell]

I'm looking at the GT pictures and it looks amazing, and the range doesn't seem to suffer so much. Makes me want to trade in my premium...

If I'm lucky enough to do that, would I get two federal tax credits?

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[TJ-Mach-e]

If you order one now you probably wont get it before the year is over so you will be able to claim the Tax Credit for this year and also next year.

But if you are able to snag one before this year is over then as long as your tax liability will be over $15k then yes you can get both tax credits.

 

[NmbrsNvrLie]

As long as you didn’t purchase the first with intent to sell, then you would be illegible for both.

 

[jojomontag]

Also, be sure to understand that the credit is not a "refundable" credit. We will not get $7500 on top of any return we will already receive. It's $7500 subtracted from to amount of taxes we should have paid. If you only had to pay $7500 in taxes, then the tax liability will be zero (no such thing as a negative tax liability, so if you owe less than $7500, the liability is still zero), and you will only receive the amount of taxes you paid as a refund. Basically, the tax credit is only beneficial to those who owe at least $7500 or more in taxes.

 

[Scooby24]

Also, be sure to understand that the credit is not a "refundable" credit. We will not get $7500 on top of any return we will already receive. It's $7500 subtracted from to amount of taxes we should have paid. If you only had to pay $7500 in taxes, then the tax liability will be zero (no such thing as a negative tax liability, so if you owe less than $7500, the liability is still zero), and you will only receive the amount of taxes you paid as a refund. Basically, the tax credit is only beneficial to those who owe at least $7500 or more in taxes.

Which should be everyone buying a 50k+ vehicle

 

[DYohn]

There is no limit as long as the vehicles are not for resale (as was mentioned) and that they qualify for tax credits. IRS form 8936 has space for two vehicles to be claimed, but if you purchase four cars you'd just use two forms. And as was mentioned, this is a credit against taxes already paid, not a government refund or payment. If after other ceredits you paid more than $15K in Federal taxes and purchased two Mach-Es in the same tax year, then you'd qualify for getting your $15K returned.

 

[ChuckA]

Also, be sure to understand that the credit is not a "refundable" credit. We will not get $7500 on top of any return we will already receive. It's $7500 subtracted from to amount of taxes we should have paid. If you only had to pay $7500 in taxes, then the tax liability will be zero (no such thing as a negative tax liability, so if you owe less than $7500, the liability is still zero), and you will only receive the amount of taxes you paid as a refund. Basically, the tax credit is only beneficial to those who owe at least $7500 or more in taxes.

Also, expect the trade-in value to be reduced by $7500 since the tax credit won't be available to the next owner.

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