Want that $7,500 EV tax break? Why buyers need to talk with an accountant and not just a car dealer

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Consumers considering electric vehicles, solar panels or other home energy efficiency upgrades should do some tax planning before making big-ticket purchases.

More generous rewards are here for people eyeing ways to reduce their carbon footprint at home and on the road.

The Inflation Reduction Act, the recently-enacted federal law ushering in the changes, is adding more financial rewards for going green. For individuals, those rewards mostly come in the form of credits and deductions, which mean more tax rules to consider. And in the case of credits for electric vehicles TSLA GM , there are income rules attached — which means even more tax provisions to ponder.

In the federal tax breaks, would-be buyers also need to remember their income. It applies to individuals with adjusted gross incomes up to $150,000. For people filing as head of household, it’s up to $225,000. For married couples filing jointly, the income limit is up to $300,000. The income caps go into effect next year, but there’s actually a two-year window for income eligibility. It applies to the income during the year of the sale, or the previous year.

A self-employed worker has a good amount of leeway, Steber said. For example, they can slow down when they get paid for their services, or when they send out invoices that will ultimately rake in taxable income. They also have business expense deductions to shave down income. Ford F has a waiting list for the EV companion, known as the Lightning, to its best-selling F-150. It’s a model that electric-transition proponents suggest will be a big test of business owner interest in switching to EVs.

 

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its a scam.. a literal transfer of 💰 from tax payers to cooperations who wont deliver on the promise they set. They were just Biden doners The double standard They wanted elonmusk in jail for having a big goal.

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