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Discussion Starter · #1 ·
Hey all-
I'm looking to solicit some opinions. I've got a Volt soon to be on the way - TPW 11/28. I'd like to buy, not lease. I've been paying the AMT for a few years, and I don't think that's likely to change. Based on some 'Googling', most of which returned me to various threads in this forum, because of the AMT, I don't think that I'll be eligible for the $7500 tax credit.
Not long ago, I recall that some GM dealers were being criticized for selling Volts to one another, and claiming the tax credit for themselves. If, in fact, a dealer can do this, i.e. 'purchase' the Volt, does anyone think it may be reasonable/legal for my dealer to 'purchase' my Volt, and then sell it to me at a reduced price, since they'll be able to 'claim' the tax credit? Wouldn't that be somewhat analagous to a leasing arrangement in which the capitalized cost of the Volt is reduced by the leasing company that keeps the tax credit? As someone else noted in a similar thread, it's somewhat irksome, if not a bit counterintuitive, that many individuals within a targeted demographic likely to purchase a Volt are ineligible for the federal incentive that was created to spur its sales...
 

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The credit is not subject to AMT since 2010 returns. I'm sure some folks on the board here that claimed the credit on last years return can confirm

http://www.fueleconomy.gov/feg/taxevb.shtml

Click On 'claiming the credit'
 

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Can you get a buddy to buy the car, have the dealer agree to sell it without registering it for street use, have your friend turn around and sell it to you for a little profit, they claim the $7500, and then you register it?

You might have to shop dealers willing to work with you on that paperwork process. But there are thousands of dealers to try in the US.
 

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I don't know about your state, but here in good ol' West by Gosh Virginia, that would double your car purchase (i.e. "privilege") tax. On the Volt paying two 5% purchase taxes would eat up most of the $7500 credit.

WVhybrid
 

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Discussion Starter · #6 ·
The credit is not subject to AMT since 2010 returns. I'm sure some folks on the board here that claimed the credit on last years return can confirm

http://www.fueleconomy.gov/feg/taxevb.shtml

Click On 'claiming the credit'

As Britt says the credit is NOT subject to the AMT.

You guys ROCK! Thanks! I had posed the question to my accountant earlier today, regarding the credit and the AMT, and he admittedly seemed a bit fuzzy on the answer. He said, somewhat vaguely, that he recalled having clients who tried to claim 'hybrid' car tax credits (presumably related to the Prius?) which were not applicable if the client was paying in the AMT. I'm not familiar with the nature of the Prius credit, but that link above regarding the Volt credit clearly states "For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT)." I'll be sure to bring this to my accountant's attention.

Thanks again-
 

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Since you anticipate being subject to AMT, this likely doesn't apply to you, but the credit is subject to a minimum liability limit of at least the amount of the credit (in the case, $7500).
 

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You completely missed the main point on my post:

You would need to get the dealer to sell the car without registering it.

It's not a normal thing, but people in the know and with the desire do it all the time -- especially with collectable/special edition cars.

You just can't drive the car until it is registered -- quick flat-bed tow to the house from the dealer would be required (my car was flat-bedded for free to my driveway from Austin to Houston, so that's not a big deal).

And obviously you have to find a dealer that will work with you.

For $7,500, it's worth the effort.

I don't know about your state, but here in good ol' West by Gosh Virginia, that would double your car purchase (i.e. "privilege") tax. On the Volt paying two 5% purchase taxes would eat up most of the $7500 credit.

WVhybrid
 

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He said, somewhat vaguely, that he recalled having clients who tried to claim 'hybrid' car tax credits (presumably related to the Prius?) which were not applicable if the client was paying in the AMT. I'm not familiar with the nature of the Prius credit, but that link above regarding the Volt credit clearly states "For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT)."
The previous credits for hybrids, like the Prius, were subject to the AMT. The current EV credits, for the Volt, are not.

However, and this is subtle, the EV credits may reduce credits that are subject to the AMT such as the EVSE credits. For example, if your regular tax was $20,200 and your AMT tax was $20,000 you could take $200 of a $500 EVSE credit or any other credit that is subject to the AMT. But if you take the $7500 EV credit then your regular tax is now $13,700 and your AMT is $20,000. Now you can't take any of the $500 EVSE credit since your regular tax is lower than the AMT tax. Ask your accountant about this as well. Most likely it won't matter at all or the dollars will be minor but it never hurts to ask.
 

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Discussion Starter · #10 ·
The previous credits for hybrids, like the Prius, were subject to the AMT. The current EV credits, for the Volt, are not.

However, and this is subtle, the EV credits may reduce credits that are subject to the AMT such as the EVSE credits. For example, if your regular tax was $20,200 and your AMT tax was $20,000 you could take $200 of a $500 EVSE credit or any other credit that is subject to the AMT. But if you take the $7500 EV credit then your regular tax is now $13,700 and your AMT is $20,000. Now you can't take any of the $500 EVSE credit since your regular tax is lower than the AMT tax. Ask your accountant about this as well. Most likely it won't matter at all or the dollars will be minor but it never hurts to ask.
Don-
I most certainly will. Thanks again for the info.
 
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