You need to make a video showing us how to fill out to form when credit was transferred to dealer at the time of purchase. There’s nothing out there with examples and the instructions of the sch A is worst,so confusing!!! Help us lol
According to the IRS, 'placed in service' means when you accepted delivery of the car (i.e. took it home). For example, if you purchased a vehicle in November, but you had to order it and it didn't arrive until January, then it would be considered 'placed in service' in January. For most people, this simply means when you drive it off the lot. www.irs.gov/newsroom/topic-c-frequently-asked-questions-about-when-the-new-requirements-apply-to-the-new-clean-vehicle-credit
Finding out trying to purchase a BMW I3 from any dealer in the southeastern US. Almost all of the used car dealers do not want to let the person who is purchasing the car add the credit to the dealers invoice (reduce bottom line). They do not want to wait for the government to pay the 30%. Many dealers are keeping the listed price the same, then telling the buyer that this price they are showing has already deducted the 30% or $4,000. The dealer just charges list price, then will submit forms, and keep the rebate. It is obvious when the dealer is pulling the wool over the customers eyes. I have been trying for about a month and not much luck in anyway. Good luck finding a dealer who is honest.
I'm not sure that the dealers are pulling the wool over peoples' eyes. The tax credit is yours, and up until 2024, you would have to wait until filing your tax return to claim the credit. Starting in 2024, the Internal Revenue Code *allows* the taxpayer to transfer the credit to the dealer for cash. Then the dealer can claim the credit on the dealership's tax return. But there's nothing in the code that *requires* dealerships to offer this deal. So if the dealership tries to 'price in' the credit, you can simply not complete the paperwork and keep the credit for yourself. And you can use the walkaway option to negotiate the price down with the dealership.
I didn’t do this form yesterday as my tax preparation person said I didn’t need to do it since I transferred the credit to the dealer. Do I need to amend my taxes or should I be okay?
Before actually filing the tax return, I would ask the tax preparer about this passage from the form instructions: If you elect to transfer the credit, you must file Form 8936 and Schedule A (Form 8936) with your return for the tax year in which the vehicle was placed in service. If you already filed, you *may* have to file an amended tax return after tax season, but there isn't clear guidance on that just yet. Generally, it's not a good idea to try and file an amended tax return during tax season (for the current tax year). Also, since this is a new change to the form, there might be IRS guidance that comes out. So if you didn't file, I'd ask the tax person about that passage in the form instructions. If you already did file, I'd probably put it on my 'to-do' list to check back in May/June to see if an amended return is required.
@@teachmepersonalfinance Thank for the nfo. I did read elsewhere it’s best to await to amend the taxes after I receive my refund. I will subscribe ur nfo was correct!
I don't know exactly, since I don't work for TurboTax. However, I believe that Form 8936 and its Schedule A would be part of your tax return as TurboTax prepares it. However, you should always check your tax return to make sure any forms are included before actually filing.
You would go to Line 8e on Schedule A, then complete the rest of Part II (and Part III, if applicable). Report the credit amounts on Form 8936 where indicated. Generally, this will go to IRS Schedule 3 (Additional Credits and Payments). However, if you no longer qualify for the credit that you transferred to the dealer, you may also need to report it on IRS Schedule 2 (Additional Taxes). Below are links to resources we created about Schedule 2 and Schedule 3: IRS Schedule 2, Additional Taxes Article: www.teachmepersonalfinance.com/irs-schedule-2-instructions/ Video: ua-cam.com/video/Yb_AwqA_sPM/v-deo.html IRS Schedule 3, Additional Credits & Payments Article: www.teachmepersonalfinance.com/irs-schedule-3-instructions/ Video: ua-cam.com/video/3SY1y9qowjA/v-deo.html
Of course! Your tax advisor should be able to help you out. If not, you can schedule an appointment with me, and we'll walk through the form together: calendly.com/forrest-teachmepersonalfinance/30min
Thanks!
I purchased my Tesla with a Co-signer. Do both people on the car registration need to do this form on their taxes?
is there an link to example of to fill out these forms with the credit transferred to dealer on a personal use ev car?
You need to make a video showing us how to fill out to form when credit was transferred to dealer at the time of purchase. There’s nothing out there with examples and the instructions of the sch A is worst,so confusing!!! Help us lol
Do you have a specific question, where you are stuck?
What do you mean by date placed in service please? Does that mean when the car was purchased?
According to the IRS, 'placed in service' means when you accepted delivery of the car (i.e. took it home). For example, if you purchased a vehicle in November, but you had to order it and it didn't arrive until January, then it would be considered 'placed in service' in January. For most people, this simply means when you drive it off the lot.
www.irs.gov/newsroom/topic-c-frequently-asked-questions-about-when-the-new-requirements-apply-to-the-new-clean-vehicle-credit
Finding out trying to purchase a BMW I3 from any dealer in the southeastern US. Almost all of the used car dealers do not want to let the person who is purchasing the car add the credit to the dealers invoice (reduce bottom line). They do not want to wait for the government to pay the 30%. Many dealers are keeping the listed price the same, then telling the buyer that this price they are showing has already deducted the 30% or $4,000. The dealer just charges list price, then will submit forms, and keep the rebate. It is obvious when the dealer is pulling the wool over the customers eyes. I have been trying for about a month and not much luck in anyway. Good luck finding a dealer who is honest.
I'm not sure that the dealers are pulling the wool over peoples' eyes. The tax credit is yours, and up until 2024, you would have to wait until filing your tax return to claim the credit.
Starting in 2024, the Internal Revenue Code *allows* the taxpayer to transfer the credit to the dealer for cash. Then the dealer can claim the credit on the dealership's tax return. But there's nothing in the code that *requires* dealerships to offer this deal. So if the dealership tries to 'price in' the credit, you can simply not complete the paperwork and keep the credit for yourself. And you can use the walkaway option to negotiate the price down with the dealership.
I didn’t do this form yesterday as my tax preparation person said I didn’t need to do it since I transferred the credit to the dealer. Do I need to amend my taxes or should I be okay?
Before actually filing the tax return, I would ask the tax preparer about this passage from the form instructions:
If you elect to transfer the credit, you must file Form 8936 and Schedule A (Form 8936) with your return for the tax year in which the vehicle was placed in service.
If you already filed, you *may* have to file an amended tax return after tax season, but there isn't clear guidance on that just yet. Generally, it's not a good idea to try and file an amended tax return during tax season (for the current tax year). Also, since this is a new change to the form, there might be IRS guidance that comes out.
So if you didn't file, I'd ask the tax person about that passage in the form instructions. If you already did file, I'd probably put it on my 'to-do' list to check back in May/June to see if an amended return is required.
@@teachmepersonalfinance Thank for the nfo. I did read elsewhere it’s best to await to amend the taxes after I receive my refund. I will subscribe ur nfo was correct!
If you use Turbotax for your tax return what happens to Form 8936 ? Do you still need to file it separately or TT takes care of it?
I don't know exactly, since I don't work for TurboTax. However, I believe that Form 8936 and its Schedule A would be part of your tax return as TurboTax prepares it. However, you should always check your tax return to make sure any forms are included before actually filing.
What about when you transfer the credit to the dealer? Specially 8c if you click NO if you transfer the credit to the dealer stop here. What's next?
You would go to Line 8e on Schedule A, then complete the rest of Part II (and Part III, if applicable). Report the credit amounts on Form 8936 where indicated. Generally, this will go to IRS Schedule 3 (Additional Credits and Payments). However, if you no longer qualify for the credit that you transferred to the dealer, you may also need to report it on IRS Schedule 2 (Additional Taxes).
Below are links to resources we created about Schedule 2 and Schedule 3:
IRS Schedule 2, Additional Taxes
Article: www.teachmepersonalfinance.com/irs-schedule-2-instructions/
Video: ua-cam.com/video/Yb_AwqA_sPM/v-deo.html
IRS Schedule 3, Additional Credits & Payments
Article: www.teachmepersonalfinance.com/irs-schedule-3-instructions/
Video: ua-cam.com/video/3SY1y9qowjA/v-deo.html
Does the $7,500 add onto your yearly income?
No. It's a tax credit, which reduces your overall tax liability, dollar for dollar.
@ so I put the tax credit on my down payment, I was wondering would that add to my yearly income?
@@MrWeeboler It should not. It's a tax credit, not additional income.
Hello. I’m confused. I transferred the $7500 to the dealer @ the time of sale to get the discount. Do I still report this?
@ yes, report it. If you don’t you will owe the IRS $7,500. By filing you’re just acknowledging that you took the credit for your car.
Can I have my tax advisor help me fill this out in person?
Of course! Your tax advisor should be able to help you out. If not, you can schedule an appointment with me, and we'll walk through the form together: calendly.com/forrest-teachmepersonalfinance/30min