TaxWatch: Want that $7,500 EV tax break? Why buyers need to talk with an accountant and not just a car dealer

by | Oct 13, 2022 | Stock Market

More generous rewards are here for people eyeing ways to reduce their carbon footprint at home and on the road. Anyone considering electric vehicle purchases, solar panels
or other home energy efficiency upgrades should do some planning first before the big-ticket purchases. That’s not only shopping around to determine costs, quality and availability, it’s tax planning too.

The Inflation Reduction Act, the recently-enacted federal law ushering in the changes, is adding more financial rewards for going green. For individuals, those rewards mostly come in the form of credits and deductions, which mean more tax rules to consider. And in the case of credits for electric vehicles

there are income rules attached — which means even more tax provisions to ponder. New Jersey accountant June Toth has been constantly fielding questions from clients who want to see if they can put the credits to use. A common query is about income eligibility, and what can be done if someone is near or just above the income caps. “They are really focused on their solar roofs, and electric vehicles,” said Toth, owner of zbt Certified Public Accounting & Consulting. It’s coming to the end for 2021 tax returns. People who got an extension earlier this year now have an Oct. 17 deadline to file their returns. But it can be the start of planning for 2022 returns that allow for the new and broadened tax breaks. In a time of four-decade high inflation, raking in every last penny means even more. Here’s what to remember.Where income rules apply So you want the tax break of up to $7,500 for a new electric vehicle? For a qualifying new el …

Article Attribution | Read More at Article Source

Share This