Dear Tax Guy, I’m expecting a $15,000 tax bill this year. I installed a residential solar and battery system in the spring of 2023 for $60,000. This would entitle me to an $18,000 tax credit. I am contemplating purchasing a Tesla Model Y
TSLA,
-0.77%
by the end of the year, which would entitle me to a $7,500 EV tax credit.
Would the EV tax credit be applied first to reduce my tax liability? Or would the tax credit for the solar installation go first to reduce my tax bill and make the EV credit irrelevant? Slamming the BreaksDear Slamming, If you are focused on the tax incentives, wait until next year to purchase the Tesla. “It is correct that the solar credit would be considered first and would reduce the tax for 2023 to $0, rendering the credit for the Tesla null,” said Tom O’Saben, director, tax content and government relations at the National Association of Tax Professionals, an organization with 24,000 members. If you purchase your car before the end of the year, “you’re throwing money away,“ he ad …
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TSLA,
-0.77%
by the end of the year, which would entitle me to a $7,500 EV tax credit.
Would the EV tax credit be applied first to reduce my tax liability? Or would the tax credit for the solar installation go first to reduce my tax bill and make the EV credit irrelevant? Slamming the BreaksDear Slamming, If you are focused on the tax incentives, wait until next year to purchase the Tesla. “It is correct that the solar credit would be considered first and would reduce the tax for 2023 to $0, rendering the credit for the Tesla null,” said Tom O’Saben, director, tax content and government relations at the National Association of Tax Professionals, an organization with 24,000 members. If you purchase your car before the end of the year, “you’re throwing money away,“ he ad …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]