Is it possible to buy a new Volt and have the dealer take off the $7500 tax incentive? I don't have enough tax deductions to take advantage of the incentive but I hate to leave it on the table. My only other option is to buy used where the tax incentive has already been used. Appreciate any and all feedback.
Looking to buy 2017
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Tax deductions have nothing to do with it. The tax credit will reduce the taxes that you owe (you are working and earning income aren't you) up to $7500.
Look at line #44 on your last tax return. The amount on that line will be reduced by up to $7500 and you get the difference back as a refund.
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"Tax deductions"? You must mean not enough tax liability. Adding more tax deductions causes your tax to go down, not up. Let's double check what you mean. Take a look at your 2016 1040 line 44. If that amount is greater than $7500 and you will make about the same income in 2017, then you should be good.
if it is below $7500, then you could (1) go earn more money - more is never bad (2) do a Roth conversion to generate that liability (3) if you are at retirement age, withdraw more to generate a larger tax liability (4) sell some investments to generate some capital gains tax (5) reduce any charitable giving to reduce your deductions (6) a number of other things I haven't though of that others may suggest.
As for trying to get the dealer to take the tax incentive - don't do that. It's called tax fraud. People go to jail for that.
The last option is to lease the Volt, the leasing company then takes the tax credit, and it's up to them how much to apply towards your purchase. Usually you don't get the first $7500 and I think leasing is the worst possible way to own a vehicle (others on this site will disagree with me, but most of them aren't in the double comma club either).
The amount you can get has nothing to do with your tax refund (maybe that's what you meant by deductions). The year I bought my volt, the IRS cut me a $10K check as I had a refund coming and the tax credit bolstered that refund by $7500.
Remember, the goal is to pay more tax not less... if I had to pay $1M in taxes, that means I'm making a whole lot more.
As mentioned it's a tax credit not a deduction. Hence you don't have to itemize to claim it. And as mentioned, there is no way the dealer can take it for you. But read further ....
Another method is to lease. In this case the leasing company takes the credit for you. It won't pass the full credit to you but you'll get a good portion of it, and at the end of the lease you can buy the car. Or not. It's a choice. It's one of the reasons leasing an electric car can make sense.
Another method is to lease. In this case the leasing company takes the credit for you. It won't pass the full credit to you but you'll get a good portion of it, and at the end of the lease you can buy the car. Or not. It's a choice. It's one of the reasons leasing an electric car can make sense.
Read Don's post again, leasing is a way to get most of (like 85+%) the tax credit through the lease calculations. You should have at least a basic understanding of the variables involved in leasing (capitalized cost, interest factor, residual value, miles allowed per year, etc.) before embarking on a lease. Others here are more familiar than I am and might be able to help.
Another option to keep things simple is to do exactly what you wrote, just go for a used Volt. Used Volt values inherently factor in the tax credit and perhaps any state incentives as well. That keeps things simple and you still get the benefit of the tax credit/incentives.
Another option to keep things simple is to do exactly what you wrote, just go for a used Volt. Used Volt values inherently factor in the tax credit and perhaps any state incentives as well. That keeps things simple and you still get the benefit of the tax credit/incentives.
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I was in a similar situation, retired with line 44 below $7500. My solution was to take an appropriately sized distribution from my IRA to boost my taxable income up. You will have to do a "preliminary projected tax return" before the end of the calendar year to determine the appropriate size distribution. A little bit of effort, but not really that hard.
VIN # B0985
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Unless you need a specific feature like ACC found only on fully loaded 17's I'd shop around for a nice clean pre-owned Gen II. Looking on cars.com within just 500 miles from my home in southern IL, I found dozens of nice pre-owned Gen II and the $7500 credit is usually already factored into it's initial trade in value and hence used sale price. That's an easy way to get a fair deal and into a car today. Also check out CARMAX.com, if your flexible on color/options and can move quickly you might snag a great deal on a Gen II.
Good luck and good hunting.
Good luck and good hunting.
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Ok, so while other people are telling you to just take a bigger distribution to generated that $7500 tax burden, I want to make sure that the car is within your means. For example, if you have a $1m+ nest egg and you are artificially pulling out slowly to keep taxes low, then by all means take that larger distribution and get yourself a new volt. But if you are on the other extreme where you are only on social security and/or a small fixed pension and this is all the money you will see causing your line $44 to max out below $7500, then a new volt isn't in the cards. Look at this $35-44k expense as a percentage of your net worth. If you cannot move cash around to pay for it outright without it affecting food, shelter, utilities, etc. then definitely look at lower priced used volts. Only you know the full picture. We're all hoping you can pull it off.
But if it were me, I'd drive the 2013 into the ground before replacing it - no need to toss out a perfectly good volt. Yes the g2 has longer ev range and better fuel economy, but you'd have to drive a $***load of miles for it to break even compared to a paid-for (well I assumed paid for) g1. That's why I haven't upgraded my g1 to a g2.
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So, I have a question about that...Why would there be used Gen 2's already available? Yes, I see them out there too (and other practically new cars with low mileage for sale). My question is...."what's wrong with them?" Even leases are typically for 3 years, so too early for lease returns too. When I was car hunting last year, I saw these, but was always suspicious as to why they (any of them) were in the used car bin. I always figured, an unreported accident/damage, something mechanically wrong with the car that was capable of being hidden during the sale, etc etc. Don't get me wrong, I had the same suspicions about any practically new car sold as used, from Volts to Camrys. Inquiring minds would like to know.
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Husband walks into a dealership just for a test drive, gets strong-armed by a fast talking salesman, drives home with the car, the wife has a fit, and the car goes back to the dealership. A coworker of mine recently came home with a new car that both he and the wife agreed upon, discovered that it didn't have heated seats which was a showstopper, and they were at the dealership the very next day to swap for a different car. There are many reasons why new cars end up back on the dealership lots - and it's not always because they got a lemon and bolted.
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Ok, so they bought a car that didn't have everything they wanted (and heated seats can be added after market). Won't they lose their butt on that swap? Isn't that about the dumbest thing to do - to swap that fast? I have to admit I've been lurking here for years and absolutely LOVE the idea of the Volt. But when I went shopping, the risk-averse side of me won out and I got a Camry (due to longterm reliability). I've been unhappy with the fuel economy from day 1 (my fault), while those around me praise the anemic 30 miles/gallon.
Despite that, I'm not about to turn around and buy ANOTHER new car. I guess I thought most people would realize this folly. The only legit reason I could see is, unexpected job loss (immediate need to reduce expenses), moving out of country, or moving to a city where you could legitimately do without a car. Any thoughts? Wish I'd asked this question while in the car-buying mode. Might have taken the risk on a practically new, someone else took the depreciation bath car...maybe. Regardless, I still follow this forum and have high hopes and well wishes for Voltec.
Despite that, I'm not about to turn around and buy ANOTHER new car. I guess I thought most people would realize this folly. The only legit reason I could see is, unexpected job loss (immediate need to reduce expenses), moving out of country, or moving to a city where you could legitimately do without a car. Any thoughts? Wish I'd asked this question while in the car-buying mode. Might have taken the risk on a practically new, someone else took the depreciation bath car...maybe. Regardless, I still follow this forum and have high hopes and well wishes for Voltec.
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They actually got an incredible deal as they were paying more for the used 2 year old used car they financed last year. They were able to get this new car after the swap for about the same amount. Apparently Mazda had added some incentives that made the math work out. I'm guessing the dealer never titled the first new car as they got it late after the dealership closed, so that paperwork didn't go in until the next morning anyway.
As for MPG, with my 50 mile round trip commute and no charging at work, I'm still getting 72 MPG on the dash (yes that number is warped by the electricity which isn't accounted for in this MPG metric). Blows away any Toyota, even the Prius.
Other possible reasons
- need more space (minivan/CUV/SUV)
- need more fun (Hellcat or Vette)
- bored and likes to swap cars every few weeks (Bazinga is guilty of this - in the time I've had my one volt, he had two gen1s, a gen2, a Vette, and now an Acadia)
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In this case the Volt's tax credit would zero out your tax liability for the year. If your tax liability for the year is $5,000 then you'll get a $5,000 credit to zero out your taxes. Any taxes you paid via W2 or 1099 (any variant) would then be refunded to you when you file.
Also, don't lease. The cost of money on an auto lease is higher than paying for the car via credit card.
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