[jg123]

I bought a 2017 Volt with ACC, illuminated charge port (yay?), cargo net, and rear cargo mat on Friday December 30th. Unfortunately, my insurance agent was closed, and the department that can get a RMV-1 letter to a dealer at MAPFRE/Commerce was closed, too. So, paid for the car on December 30th, but it will be registered on January 2nd. I am thinking I "took delivery" in 2016 and can claim the purchase on my 2016 taxes. Any opinions?

Dollar details are as follows for those interested:
MSRP - 40,920
Price - 36,745
Rebate - 1500
Doc fee - 394
MA sales tax - 2227
Inspection sticker, registration, and title - 170

 

[DonC]

Congrats on the car. Nice deal as well. It's not delivery. It's "placed in service". And if you drove it off the lot on December 30th it was placed in service on that date.

 

[jg123]

Yea, I couldn't drive it on the streets as the insurance agency was closed so no license plate. I guess I could have driven it anywhere in the dealer's parking lot. Not sure if that counts.

 

[Ladogaboy]

Interesting. California issues a temporary (paper) registration that gets taped to the window. The buyer has a grace period to add it to his or her insurance, but if they borrow money to pay for the car, the lender will force-place insurance if the buyer doesn't.

Regardless, for the Fed rebate, the car needs to be "delivered" by December 31 of the tax year you want to claim it.

 

[DonC]

Yea, I couldn't drive it on the streets as the insurance agency was closed so no license plate. I guess I could have driven it anywhere in the dealer's parking lot. Not sure if that counts.

I'd assume you drove it when you took delivery. FWIW I've always driven off the lot and added the vehicle to the insurance later.

 

[jg123]

There used to be temporary plates in Massachusetts. Sadly no longer.

 

[ctprice]

The government credit should be based on the date on the paperwork not the date the car was driven from the dealership. I sold Chevy's for twenty years and there were many times that we did paperwork for cars in transit or coming in on dealer trade before the car was even on the lot. This was done so that the customer could use the current rebates before the month flipped. Most likely the dealership also reported the sale to GM on the 30th to make sure they were credited for a December sale. You own the car as of the 30th.

You should not have a problem with your tax credit but check with your tax professional.

 

[Bill Step]

what color did you get?

 

[Gary Norton]

Look at your paperwork. In order to drive it from the lot it must have some type of state registration, temporary or otherwise. If the date is 2016 you are good to go. That type of documentation is required for several reasons, not the least of which so that you have proof of ownership in the event you are stopped by the authorities. If, however, your ownership documents all show a 2017 date you may have an issue.

 

[jg123]

what color did you get?

Dark heather grey with a black interior.

 

[bro1999]

You should be good if all your paperwork (especially purchase paperwork) shows a 2016 date. I am in a similar dilemma with my Bolt purchase (all paperwork done 2016, won't be delivered till this month).

I think the IRS has better things to do that to question whether the credit applies to 2016 or 2017. You are owed the credit either way, so not like the IRS would be saving the gov't money by denying it if it's claimed in 2016 vice 2017. I am willing to go into that gray area.

Now, if the federal tax credit EXPIRED completely at the end of 2016....I'd be much more worried then, as the IRS would have an incentive to scrutinize December purchases with a magnifying glass.

 

[KenC]

I bought a 2017 Volt with ACC, illuminated charge port (yay?), cargo net, and rear cargo mat on Friday December 30th. Unfortunately, my insurance agent was closed, and the department that can get a RMV-1 letter to a dealer at MAPFRE/Commerce was closed, too. So, paid for the car on December 30th, but it will be registered on January 2nd. I am thinking I "took delivery" in 2016 and can claim the purchase on my 2016 taxes. Any opinions?

Dollar details are as follows for those interested:
MSRP - 40,920
Price - 36,745
Rebate - 1500
Doc fee - 394
MA sales tax - 2227
Inspection sticker, registration, and title - 170

You should be good. I did the same last year for my '16 Volt. As long as the paperwork shows 2016, you're good. I actually didn't get my car until a few days later, as it was still in transit. As long as you have a VIN, I think the dealership can do the paperwork, as long as you are ready to pay.