Would you buy a car today to get the tax credit?
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Anonymous
| A few months ago we were looking at plug in hybrids and liked the Ford Escape, but didn’t buy it because DH wanted to wait for the new expected features in the 2023. Under current law, we’d get I think a 7k tax credit. With the new law, we have too high an income to qualify for the credit so we’d need to pay “full price”. Under the new law, we need to be in a binding contract to get the tax credit that’s permitted under current law, so we need to enter into the contract in the next few days before the new law is signed. We could put in a binding contract for a 2023, but the dealerships don’t know the msrp yet, so essentially we’d be required to buy a car without knowing the total price (though we can guesstimate right now). Would you put in for a binding contract to buy a 2023 today so you qualify for the current tax credit, even if you didn’t know the exact price? |
Anonymous
| What’s the income limit for the benefit? |
Anonymous
| No I would not sign a binding contract for a car sight unseen when it’s a completely new model year. |
Anonymous
| How can it be a binding contract if there is no actual price? |
Anonymous
|
A lot of the companies appear to be doing "binding contracts" where you're only on the hook for $100 or $500. Consult a tax attorney on whether that counts for the IRS's purposes, but if you're pretty sure you like the car, risking $100 to get $7,500 back isn't a horrible bet.
The question I have is what year's AGI they'll use to calculate the income limits. If we bought next year using 2022 AGI, we'd be eligible; by the 2024 tax season, our 2023 AGI would put us above the limit. (Do I actually need a tax subsidy to buy a car in a household that makes just under $300,000 now and will make over that next year? Probably not, but that's what the law is about to be.) Anyone have a guess? |
Anonymous
| I did! I got one yesterday for the tax credit. But I spent 9000$ over msrp. |
Anonymous
What did you buy???! |
Anonymous
300k agi for married (150 single.) So like most of DCUM we are out. |