Selling my 4xe

[wranglerbro]

I don't know what I'd replace it with quite yet. Possibly a Colorado or Canyon. Even if I bought one for $40k I would use the tax credit money to put down and pay the rest off over 36 months. I don't have a ton of taxes tied up into the 4xe as I traded in a Silverado that covered most of the tax.

Nothing to see here people.....

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[MARSHMELLA]

If someone buying one of these doesn't owe $7500 in taxes, I need their accountants number. I guess it could be an issue if you purchase it within an LLC and don't cover.

I’m not going to post my accounts info here, but my wife and I both make 6 figures. We have 3 kids and have never owed any money on taxes other than what we paid from our pay checks throughout the year.

It’s a tax credit. Which means that if the government owes you $1,000 after you submit your taxes and income for the year, you will get a check from the IRS for $8,500.
If you end up owing the government $1,000 more than you already paid throughout the year, then you get a $6,500 check from the IRS.

 

[BlackGenesis]

You might see some interest at $53k

 

[jellis4148]

I could be incorrect but you don’t actually get the $7,500. I is up to $7,500, and it’s a credit. Meaning if you were to owe $10,000 in taxes normally. You actually only owe $2,500. If you don’t owe or actually get a return then you get nothing from this. Again, I could be wrong and I’m not an accountant but that’s what I have been told since this started several years ago.

 

[4xeRubicon]

I'm assuming that you have to provide some proof of your purchase that uniquely identifies your vehicle in order to claim the ev credit. If I was running the program you damn well better be sure that I'm cross checking the Vin on your tax return against one of the national registration dbs. It's a simple query to run, and a relatively cheap, quick, and easy way to flag people manipulating and cheating the system. You are absolutely entitled to do what you want, but if you sell it, I would certainly talk to a tax specialist before trying to claim the credit.

Your reimagination of the tax law is interesting, but also irrelevant, as the tax law is already set. He can sell and still get the rebate, as he didn’t buy it with the intent of reselling.

The evidence is that when selling, he will lose his shirt. It obviously isn’t a profit making transaction. Nobody sells a new vehicle 10 weeks after buying it in a way to make a profit (without extensive modification).

if he bought and then resold the same new vehicle within days, like a broker, then it could trigger a buy for profit consideration.

 

[4xeRubicon]

I could be incorrect but you don’t actually get the $7,500. I is up to $7,500, and it’s a credit. Meaning if you were to owe $10,000 in taxes normally. You actually only owe $2,500. If you don’t owe or actually get a return then you get nothing from this. Again, I could be wrong and I’m not an accountant but that’s what I have been told since this started several years ago.

it is amazing how many people in this country have no idea how taxes work.

 

[Ratiogear]

I could be incorrect but you don’t actually get the $7,500. I is up to $7,500, and it’s a credit. Meaning if you were to owe $10,000 in taxes normally. You actually only owe $2,500. If you don’t owe or actually get a return then you get nothing from this. Again, I could be wrong and I’m not an accountant but that’s what I have been told since this started several years ago.

You're not wrong but you are.

"Owe" has weird connotations, because there's a line on your tax form that uses the word, and it does not equal the value that matters for this.

For most workers who have an employer and file 1040s using their w2s, you owe or are owed a small amount of money relative to your overall income. It's a small amount to be miffed about owing the government at end of year, or (for most Americans) a sweet little refund check to buy a flat screen or a new winch+bumper.

But all year that worker paid taxes through his or her employer. That's their federal income tax, and that total amount over the year is their tax liability. The tax refund or taxes owed when they file is not their tax liability, it's the difference between their tax liability and what they've paid in over the year of paychecks.

The tax credit counts against your tax liability, not your taxes owed/taxes refunded.

If you can afford a 60k car, you most likely paid enough in taxes over the year that your tax liability is in excess of 7500. If you make 80k a year filing individually, you are over the 7500$ tax liability.

If you perfectly managed your withholding over the year and your tax filing is perfect and you owe nothing and receive no refund, then with the EV tax credit, you'd get a check for 7500 dollars as a refund. If you normally get a 1500$ refund and nothing changed this year except buying this car, you'd instead get a 9000$ refund. If you normally owe 500$, you'd instead get a 7000$ check.

And on this thread, let me know what you end up selling it for OP.
If I can trade mine in next year and get another tax credit when I file in 2023, I'm interested. Maybe a new one will have the backup lines!

 

[wranglerbro]

I could be incorrect but you don’t actually get the $7,500. I is up to $7,500, and it’s a credit. Meaning if you were to owe $10,000 in taxes normally. You actually only owe $2,500. If you don’t owe or actually get a return then you get nothing from this. Again, I could be wrong and I’m not an accountant but that’s what I have been told since this started several years ago.

SMH

 

[GoldenKnight]

Maybe it's different with a lease vs purchase, but we leased our 4xe and they took the $7.5k off msrp on the deal.

Maybe I can double dip at tax time lol

 

[Hoopster3]

And on this thread, let me know what you end up selling it for OP.
If I can trade mine in next year and get another tax credit when I file in 2023, I'm interested. Maybe a new one will have the backup lines!

I have dealer offers between $55-58k. Givemethevin.com gave me a range and then sent an offer for $57k, I countered based on they didn't allow me to select all the options I have. Hopefully I hear back from them tomorrow.

Speaking of backup lines, my 4xe had an over the air update today. Hoping that fixes the issue.

 

[Hoopster3]

Maybe it's different with a lease vs purchase, but we leased our 4xe and they took the $7.5k off msrp on the deal.

Maybe I can double dip at tax time lol

The tax credit goes to the lease company. Hopefully you got a better lease deal because of it.

 

[multicam]

Hey, guess what?! Turns out most of us aren’t CPA’s or whatever the acronym for accountants is. That’s why we pay those people to handle our taxes. So some people have no idea how that works because it’s our job to know how to do other things unrelated to taxes.

Alls I know is, they don’t offer the 4xE in two doors so IDGAF!

 

[The Last Cowboy]

The "tax credit" is more of a government subsidy is how I understand it. It's $7500 from those of us who pay taxes to those of you who want a 25 miles electric range. In other words the government is trying to kick start EV and PHEVs. Without those subsidies, EVs would have to compete with ICE vehicles on an even playing field. Very few would get sold that way.

So, the OP very likely reaped that benefit at the time of purchase. Every potential buyer likely knows that. There's an old saying in car and real estate sales, If it isn't selling, the price is too high. You can't compare regular Wrangler pricing against 4Xe pricing.

 

[Geesmill]

it is amazing how many people in this country have no idea how taxes work.

It really isn't that amazing. In actuality it sort of makes sense. Most people work for someone else and have taxes withheld from their paychecks. Most people pay no attention and that is why there isn't a huge uproar with how much money the feds/states take and then waste of our labor. If you had to send all of that in quarterly, first, people would be appalled and second, they wouldn't send in the payments. That is why the system is set up the way it is. Ignorance is bliss and we shitizens can go home and watch the latest Netflix docudrama and chill. Bread and circuses...

 

[Low_Spark]

Your reimagination of the tax law is interesting, but also irrelevant, as the tax law is already set. He can sell and still get the rebate, as he didn’t buy it with the intent of reselling.

The evidence is that when selling, he will lose his shirt. It obviously isn’t a profit making transaction. Nobody sells a new vehicle 10 weeks after buying it in a way to make a profit (without extensive modification).

if he bought and then resold the same new vehicle within days, like a broker, then it could trigger a buy for profit consideration.

Actually the 7500 dollar credit makes it far less likely for someone to lose said shirt. Your point is taken, for me those aren't waters I'm interested in wading in.

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