Question around pricing

[astrorob]

I don't think the IRS has said anything of the sort. And I'm not trying to be difficult; I'm just trying to be precise, based on my understanding.
Per the IRS, if submitting an order and paying $500 constitutes a binding contract under your State law, my understanding is, then yes, the IRS suggests that would qualify for the pre-IRA credit.

do what you want, if you are a tax lawyer and you can defend this, fine. you probably won't get audited, but if they decide you improperly took the credit, then they'll claw back the $7500 and charge you interest and penalties.

but that doesn't change the fact that the online order is not a binding contract. how many people here have been forced to buy the MME by their ordering dealer? there's lots of MMEs that dealers are happily charging ADMs on after customers declined to buy the car. there's people here that the dealer sold the car out from under them while they were negotiating. all those people need to do is sue since the dealer broke a binding contract. but the dealers didn't, because it's not.

here is what ford's fine print says about what an online order is:

1. What is an online order?

An Order sends your vehicle configuration to your selected Dealer who will then process your order request.
By submitting an order and completing the Order Process, you are not purchasing a vehicle. Ordering does not guarantee you vehicle delivery. Your order does not guarantee a set-price for the vehicle.

given this, how does the online order constitute a binding contract? no guarantee of delivery. no guarantee of price.

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[sim1]

I appreciate the response. And while I have a response to the substance, again I'm not saying what I will or won't do. I'm just trying to be clear that the IRS hasn't been clear as to what qualifies.

 

[astrorob]

I appreciate the response. And while I have a response to the substance, again I'm not saying what I will or won't do. I'm just trying to be clear that the IRS hasn't been clear as to what qualifies.

that's pretty much always the case. i was involved in something once where the eastern offices of the IRS had one idea about what constituted imputed interest, and the western offices had a different precedent. sometimes you just have to do something and pray that your case doesn't become the next basis for a precedent.

i think the "binding contract" part is pretty clear. if you signed a piece of paper that specified that you're going to buy the car at X price on delivery, and it was countersigned by the dealer, then you're good. i just don't see any reason to believe that the online order process constitutes a binding contract.

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