[sunshineinmytank]

I want to get a '16 Volt purchased this year to lock in the rebates/offers available in 2015, but I also want the federal tax credit to apply to 2016. The IRS code says the date that matters is the day you take delivery / put the vehicle into service. Is there any way to purchase it in '15 and simply have the dealer hold it until 1/1/2016 and get my fed EV credit for '16?

I'm looking to get about $2000 in rebates one way or another (not counting the $700 costco cash card). I guess my fear is that if I purchase the car on 1/1/2016 there will be no rebates/offers available. It seems like there's still a $1000 GM rebate as of this morning through 11/30. I don't know if these will be available or not on 1/1.

Any advice?

 

[BZZT]

I don't believe so. I think you have to take the FTC in that tax year.

 

[DonC]

Not giving legal advice but technically the IRS looks to title transfer and dealers look to the day you drive it off the lot. So if you drive it off the lot on Dec 31 but title registers in Jan ....

Keep in mind this is a timing question. You get the credit in one year or the other. Taxpayers usually want the credit sooner and the IRS prefers later. Hence the rules are focused on preventing taking credits prematurely.

 

[BZZT]

...Is there any way to purchase it in '15 and simply have the dealer hold it until 1/1/2016 and get my fed EV credit for '16?...

It sounds do-able. You just need to go in and pay for (purchase) the car in 2015 and pick it up in 2016. Not sure why that would be a problem. Probably happens unintentionally thousands of times.

 

[linkim]

It sounds do-able. You just need to go in and pay for (purchase) the car in 2015 and pick it up in 2016. Not sure why that would be a problem. Probably happens unintentionally thousands of times.

If I was a betting person, I bet that this does not fly. When you pay for (purchase), the dealer fills out the title and purchase contract with a date. I guess the OP wants a date before 1/1/16. What paperwork is done on 1/1/16 to indicate a purchase in 2015 and pickup in 2016? One could sign the paperwork on 12/31/15, park the car on the lot, and come back the next day to drive off. But in my mind, the 12/31/15 date is what matters to the IRS. There must be a compelling reason not to take the tax credit on the 2015 fed tax to try and game the system. Personally I wouldn't want to deal with the IRS if I was wrong in the timing.

 

[16513]

Perhaps you could arrange with your dealer to accept a deposit in December in order to hold the car for you until January when the deal is completed. Only problem is your dealer may not want to defer a December sale.

 

[sunshineinmytank]

I've got more information from the IRS publication:
Placed in Service
You place property in service when it is ready and available for a specific use, whether in a business activity, an in-come-producing activity, a tax-exempt activity, or a per-sonal activity. Even if you are not using the property, it is in service when it is ready and available for its specific use.

So I can't purchase it and let is sit at the dealer and then pick up on 1/1, unless I purchase it the very end of december and they need to clean it, charge it, etc.

I answered my own question, but I hope this helps someone else who is looking to file the credit for 2016...

 

[Boris]

Why would you delay getting up to $7500 from the IRS by one tax year? By waiting you have lost the ability to spend that money or invest that money or simply park it and get some interest (albeit minimal %). By waiting for the 2016 tax year you have left "your" $7500 in Uncle Sam's pocket instead of having it in your pocket.

 

[sunshineinmytank]

I'm doing PV solar panels this year and EV next year, it just works out better for me tax-wise mainly because of the PV solar credit rollover, EV credits do not. So 2015 will be a solar credit year for me, 2016 will be an EV credit year for me, and 2017 could possibly be a solar credit year for me (IRS has not definitively stated whether solar credits can roll into 2017 ... but it seems likely).

 

[sunshineinmytank]

Looks like solar tax credits are continuing at 30% through 2019 and down to 10% through 2022, with steps in between. Just an FYI for those interested in solar...

 

[Whatstreet]

Looks like solar tax credits are continuing at 30% through 2019 and down to 10% through 2022, with steps in between. Just an FYI for those interested in solar...

Thanks, I plan to investigate solar this spring. Is there any reason not to take the EV credit and the solar credit in the same year?

 

[CalBear]

Thanks, I plan to investigate solar this spring. Is there any reason not to take the EV credit and the solar credit in the same year?

I believe the only reason to spread it out is if you don't pay enough federal taxes to fully realize the combined credit.