Fremont Kid
Well-Known Member
- First Name
- Steve
- Joined
- Oct 8, 2022
- Threads
- 8
- Messages
- 453
- Reaction score
- 311
- Location
- Colorado Springs, CO
- Vehicles
- 2022 Mustang Mach e Premium AWD
- Occupation
- Retired IT
- Thread starter
- #1
Thought I would start a thread where MME owners could share total purchase costs considering sale of previous cars, tax credits, rebates and/or other factors.
I ordered my MME with total cost at dealership $59,000.
My offsets: I sold my 2011 Toyota Prius w/200k miles for $3,000. Used federal tax credit of $7,500 + EV charger install credit up to $1,000 - the credit calculated to $300. Just received $4,000 Illinois rebate, which I just applied to the remaining loan amount - paying on the easy to navigate Ford Credit application; which essentially brings MME cost to $44,200.
I can understand some criticisms of this accounting because if I did not have $7,500 or more owed taxes, then the entire amount would not apply. Here is how I worked this: I calculated an estimated tax of withdrawing enough money from my IRA for this tax credit to offset the IRA taxes. I encourage others to be astute about determining how such tax credits can be used to offset earnings or retirement account withdrawals. You can make these work to your advantage.
One more note regarding why I transferred retirement savings. Similarly, I plan to withdraw money as I buy photovoltaic solar panels and other energy efficient products for which tax credits apply. This way the tax credits become the gift that keep on giving, er, perpetuating being able to withdraw retirement savings w/o large tax hits and buying products that reduce our carbon generation.
Hope this helps and all the best.
I ordered my MME with total cost at dealership $59,000.
My offsets: I sold my 2011 Toyota Prius w/200k miles for $3,000. Used federal tax credit of $7,500 + EV charger install credit up to $1,000 - the credit calculated to $300. Just received $4,000 Illinois rebate, which I just applied to the remaining loan amount - paying on the easy to navigate Ford Credit application; which essentially brings MME cost to $44,200.
I can understand some criticisms of this accounting because if I did not have $7,500 or more owed taxes, then the entire amount would not apply. Here is how I worked this: I calculated an estimated tax of withdrawing enough money from my IRA for this tax credit to offset the IRA taxes. I encourage others to be astute about determining how such tax credits can be used to offset earnings or retirement account withdrawals. You can make these work to your advantage.
One more note regarding why I transferred retirement savings. Similarly, I plan to withdraw money as I buy photovoltaic solar panels and other energy efficient products for which tax credits apply. This way the tax credits become the gift that keep on giving, er, perpetuating being able to withdraw retirement savings w/o large tax hits and buying products that reduce our carbon generation.
Hope this helps and all the best.
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