Get 2021 Premium and save $2000 or wait for a 2022 model?

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Indian Stang

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Did you find one available in a dealer’s inventory with no ADM? If so, I‘d buy it now. If you have enough tax liability for two tax credits, sell the 2021 for a profit when your 2022 arrives.
Bummer. I realized that I most likely won't have enough tax liability for two tax credits. I might have to work with a financial advisor to see if I could get the liability up somehow.
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RickMachE

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Bummer. I realized that I most likely won't have enough tax liability for two tax credits. I might have to work with a financial advisor to see if I could get the liability up somehow.
As you probably know, tax liability, line 24, has no relationship to tax withholding. Tax liability refers to the amount of tax that you owe based on your income. So yes, if that isn't $15,000 or more, you couldn't do two tax credits.

Assuming the law doesn't change, you need to generate more income for taxation before 2022 ends.

Options include:

- Convert a traditional IRA or 401K to Roth, which is an income-producing event.
- Have a bonus moved from 2023 to 2022, or get paid in advance for some of 2023.
- Sell stocks, bonds, or mutual funds that generate capital gains, which are taxable (in a taxable account).
 

HFn!eSwMFilFX4mxbn&!P9T&G

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The 2021 and 2022 batteries are identical, and in fact the update has hit the first half 2021 cars already, so it's a non-issue.

You should keep in mind that buying a 2021, in 2022, normally would be a bad thing as far as depreciation and value, vs. buying a new model 2022.

That said, if you can find one at MSRP, you might buy it.
I agree, normally. However, since they have marked the 2022's up about 3k (Premium, AWD, ER) I feel like a good chunk if not all of that depreciation and value is discounted for the 22's. Of course, with the market the way it is, who knows what will shake out over time.
 
OP
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Indian Stang

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As you probably know, tax liability, line 24, has no relationship to tax withholding. Tax liability refers to the amount of tax that you owe based on your income. So yes, if that isn't $15,000 or more, you couldn't do two tax credits.

Assuming the law doesn't change, you need to generate more income for taxation before 2022 ends.

Options include:

- Convert a traditional IRA or 401K to Roth, which is an income-producing event.
- Have a bonus moved from 2023 to 2022, or get paid in advance for some of 2023.
- Sell stocks, bonds, or mutual funds that generate capital gains, which are taxable (in a taxable account).
Thank you! I didn't think about the 401K to Roth option.
 

mylittlepony

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As you probably know, tax liability, line 24, has no relationship to tax withholding. Tax liability refers to the amount of tax that you owe based on your income. So yes, if that isn't $15,000 or more, you couldn't do two tax credits.

Assuming the law doesn't change, you need to generate more income for taxation before 2022 ends.

Options include:

- Convert a traditional IRA or 401K to Roth, which is an income-producing event.
- Have a bonus moved from 2023 to 2022, or get paid in advance for some of 2023.
- Sell stocks, bonds, or mutual funds that generate capital gains, which are taxable (in a taxable account).
Can you sell stock holdings now for 2021 taxes?
 

RickMachE

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