EV tax credit counting toward capital gains?

[Shelbeast]

Since the new law was effective in august there may be nuances that need to change on the form.

In the past, tax rates for example of capital gains changed in mid year, so gains before a certain date were taxed at one rate and gains after a certain date changed to another rate.

forms need to change based on law changes and in this case we know the law changed mid year. So the form may have to reflect that.

also tax software companies have to submit their versions to the IRS to get them approved. Many times forms are just not available by the software companies this early.

What is the new law passed in August?

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[kennethjk]

What is the new law passed in August?

Inflation Reduction Act

https://electrificationcoalition.org/work/federal-ev-policy/inflation-reduction-act/

 

[Shelbeast]

Inflation Reduction Act

https://electrificationcoalition.org/work/federal-ev-policy/inflation-reduction-act/

Thanks! looks like the only change is built in N. America.

 

[Mach1E]

Thanks! looks like the only change is built in N. America.

There were lots of changes, but for 2022, luckily none of them affected Mach Es delivered in 2022.

But yeah, that was the new law I was referring to.

And any change means IRS has to take time to issue guidance then tax software will be the last thing to finally change.

And the IRS doesn’t seem to care much with deadlines when it comes to guidance.

Recent example:

(disclaimer- dates not exact, but from memory)

Dec 2019- pass law eliminating stretch option for non spousal inherited IRAs. $ must be distributed in 10 years.

Nov 2022- issue notice that revised guidance may require RMDs starting 2023, will waive RMD for 2021 and 2022.

Jan 31, 2023…….. crickets as to whether or not this has gone into effect.

 

[woody]

Don't sell your car.
Drive it 25 years and donate it. They can then sell it for scrap.
Don't buy any damn new cars. That would probably be sound economics (you could probably find an econ. prof. to incorporate that into his economic "philosophy").
Force all of those folks who cannot at present afford a new vehicle, but can afford a reliable used vehicle, to apply for welfare (since most of the country has no viable public transportation, or in many cases no public transportation).
Being on welfare seems to be the in thing nowadays, anyhow.

Taxes are a good thing. Especially since our government agencies use/spend them so wisely.
Imagine.....taxes well spent....
Ah yes, the IRS - a fine exemplary agency of our government.
We overpay the IRS each year. Every year we get a refund, after they say we owe more with penalties and interest, after we respond to their mistake, after they send our case to someone who is able to count without using fingers and toes, after many months they send us our refund WITH INTEREST (better than any interest rate we can get in a bank) and more (dividends/capital gains thing) than we initially filed. (going to try TurboTax this year to see if it works [better])

 

[Rory]

Bottom line: you sell a personal item at or below your cost--no tax effect. you sell a personal item for a profit--gain (money you receive minus your cost basis) is technically taxable. And the amount of tax credit you were able to claim reduces your cost basis by that amount.

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