Quote:
Originally Posted by wdfifteen
In that link it says that beginning in 2024 the dealer can take the tax credit off the sales price at the point of sale. I suppose they trust you to accurately estimate your 2024 taxes as early as January. If you estimate too high and only owe $4000 I guess you will pay the IRS the $3500 difference. How that situation is handled isn't clear.
|
There are some minimum income requirements. So if a buyer goes in to buy the car, has credit but isn't making the kind of money that would have him owing less than $7500 in taxes after his AGI is calculated and estimated, he may not see the full $7500 taken off the price at the point of sale. What does seem to be clear is that anyone in this situation can file an amended tax return and either claim more is owed in credit, or maybe, as you suggest, go backwards a bit.
I think it's on the dealer to know the buyer's income (which they do to some extent) and work the deal accordingly I agree with you that a lot of it is vague and it is suggested that as a buyer you should consult with a tax advisor before getting in too deep.
What it does, or can do as a discount at the point of purchase is lower the monthly payment by using the money to buy down the interest rate, or the amount of the loan. Apparently it works with leases too, but of course in a complicated way. If you don't know what a money factor is, you need some help at the sales table.