IRS Ruling concerning $7500 Tax Deduction
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Joined: Sep 2022
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From: Santa Barbara
2017 Acura NSX
IRS Ruling concerning $7500 Tax Deduction
My Dealer was telling me that they would honor the $7500 Deduction if I leased the car. I mentioned that I could purchase the car and claim on my taxes, as long as I acquired before Dec 31st. They were not sure. Let me post the information for those of you who want to take the deduction and did not want to lease.
Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service (irs.gov) This document spells out the policy. If you take delivery between Aug 16 and Dec 31 2022 then you will get the $7500 on the 2023 EQS SUV
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) This document lists the 2023 EQS SUV as meeting the requirements for the $7500
Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service (irs.gov) This document spells out the policy. If you take delivery between Aug 16 and Dec 31 2022 then you will get the $7500 on the 2023 EQS SUV
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) This document lists the 2023 EQS SUV as meeting the requirements for the $7500
Last edited by drmanny3; Oct 31, 2022 at 05:07 PM. Reason: You only get the $7500 either by purchasing or via a lease where the leasing company chooses to credit you the $7500.
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Joined: Sep 2022
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From: Santa Barbara
2017 Acura NSX
Yes, you are correct. However, my Dealership was telling me that the $7500 was not available to the consumer because of the new law passed in August of 2022.. Mercedes had decided to magnanimously give the $7500 on a lease of the car. I told them that they were wrong in thinking that the $7500 was no longer available for the purchase of the car in 2022. They did not believe me. The problem is that while they discounted the MSRP by $7500, the lease terms are so unbelievably high. For a three year, 7500 miles per year, excellent credit score, my putting down $7500 (over and above the $7500 Mercedes gave me), a City interest rate of 8.75%, the monthly payment was $2527.00. The depreciation was $58,411, and the rent was $25,228. The Residual was $73,850. The MSRP is $142,020 the money favor turned into interest is 7+%
Last edited by drmanny3; Oct 31, 2022 at 05:05 PM.
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My Dealer was telling me that they would honor the $7500 Deduction if I leased the car. I mentioned that I could also claim on my taxes, as long as I acquired before Dec 31st. They were not sure. Let me post the information for those of you who want to take the deduction and did not want to lease.
Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service (irs.gov) This document spells out the policy. If you take delivery between Aug 16 and Dec 31 2022 then you will get the $7500 on the 2023 EQS SUV
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) This document lists the 2023 EQS SUV as meeting the requirements for the $7500
Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service (irs.gov) This document spells out the policy. If you take delivery between Aug 16 and Dec 31 2022 then you will get the $7500 on the 2023 EQS SUV
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) This document lists the 2023 EQS SUV as meeting the requirements for the $7500
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From: Santa Barbara
2017 Acura NSX
Sorry, of course I understand you either buy the car and claim the deduction, or by leasing the car you hope that Mercedes will give you the benefit. I was making the point that This Mercedes Dealership was telling me that the Deduction was not available. They Mercedes was being magnanimous in giving it to me via a lease.
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From: Atlanta
2022 Mercedes EQS 580
Sorry, of course I understand you either buy the car and claim the deduction, or by leasing the car you hope that Mercedes will give you the benefit. I was making the point that This Mercedes Dealership was telling me that the Deduction was not available. They Mercedes was being magnanimous in giving it to me via a lease.
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From: Central Florida
EQS 450+ SUV
My Dealer was telling me that they would honor the $7500 Deduction if I leased the car. I mentioned that I could purchase the car and claim on my taxes, as long as I acquired before Dec 31st. They were not sure. Let me post the information for those of you who want to take the deduction and did not want to lease.
Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service (irs.gov) This document spells out the policy. If you take delivery between Aug 16 and Dec 31 2022 then you will get the $7500 on the 2023 EQS SUV
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) This document lists the 2023 EQS SUV as meeting the requirements for the $7500
Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service (irs.gov) This document spells out the policy. If you take delivery between Aug 16 and Dec 31 2022 then you will get the $7500 on the 2023 EQS SUV
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) This document lists the 2023 EQS SUV as meeting the requirements for the $7500
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Sorry, of course I understand you either buy the car and claim the deduction, or by leasing the car you hope that Mercedes will give you the benefit. I was making the point that This Mercedes Dealership was telling me that the Deduction was not available. They Mercedes was being magnanimous in giving it to me via a lease.
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2022 Taycan GTS, 2023 EQS580 SUV, 2023 EQS580 sedan
the fact the one of dealer told me this too. I ask for MSRP for 139000 EQS580, they said only if I lease the car as there is 7500 tax credit. I am like "no there is no tax credit". sales just said yes but only for lease and this credit only paid to dealer. now all this make sense, they want to get that 7500 credit to offset the markup. but they don't want to tell me it is actually a lease credit from MB, not the tax credit
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From: Santa Barbara
2017 Acura NSX
So if you purchase the car between when the time when the new law was passed in August and Dec 31st, you can take the $7500 off your taxes. If you lease the car Mercedes buys the car and rents it to you. They can reduced the price of the car but are not legally required to do so. When I almost purchased the EQS 580 SUV at MSRP, I could have leased it from Mercedes and they agreed to credit the full $7500. So I think your dealer is charging a premium. I would shop elsewhere.
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2022 Taycan GTS, 2023 EQS580 SUV, 2023 EQS580 sedan
So if you purchase the car between when the time when the new law was passed in August and Dec 31st, you can take the $7500 off your taxes. If you lease the car Mercedes buys the car and rents it to you. They can reduced the price of the car but are not legally required to do so. When I almost purchased the EQS 580 SUV at MSRP, I could have leased it from Mercedes and they agreed to credit the full $7500. So I think your dealer is charging a premium. I would shop elsewhere.
edit: found my answer, yes still 7500 for Eqs and no only 1 tax credit per year
Last edited by guess2098; Nov 18, 2022 at 12:26 AM.
Thread Starter
Junior Member
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From: Santa Barbara
2017 Acura NSX
As I understand you can claim more than one EV Credit. At least I do not recall reading anything that suggests that you can't. If you had a business then you could have several cars for business use. Also what about a car for the Wife as well as the Husband. Here is the link to the IRS information concerning the rules on the Federal Deduction: Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service (irs.gov)
Good luck.
Manny
Good luck.
Manny
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Joined: Dec 2022
Posts: 77
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EQS 450 4maric
Yes two credsits
As I understand you can claim more than one EV Credit. At least I do not recall reading anything that suggests that you can't. If you had a business then you could have several cars for business use. Also what about a car for the Wife as well as the Husband. Here is the link to the IRS information concerning the rules on the Federal Deduction: Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service (irs.gov)
Good luck.
Manny
Good luck.
Manny
