TT Premier 2022 EV Tax Credit Traansition Rule Wrinkle

Forum|Forum|3 years ago
February 23, 2023
1 reply
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This is more of a heads up, and as documentation, than anything else. The situation is a little bit ambiguous.

I ordered a qualifying vehicle before 8/15/2022, with a true written, binding contract (a 5% penalty for not taking delivery) but did not take delivery until 11/7/2022 - the true placed in service date. (The vehicle was ordered, and we had a mfg. production number, but no VIN at the time of the contract.)

TT Premier does ask the appropriate question about a binding contract "Yes, I was under a written binding contract before August 16". I was glad to see that.

The IRS web page on the topic reads, in part: "If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement."

And the actual legislation reads, in part: "such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary's delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act."

TT Premier wants to make me change the Date Placed In Service to 8/15/2022. The language on the TT Premier page reads:

"Since you were under a written binding contract before August 16, 2022, you will need to enter 08/15/2022 in the Date Placed in Service entry below."

Since the IRS doesn't have this issue specifically identified on form 8636, I'm not sure what Intuit was supposed to do with this, but it does feel just a little weird. I am glad that the actual question about the written binding contract is in place, and I took a screenshot before changing it as documentation.

I suggest others in this situation do the same: at first enter the true delivery date, then when TT prompts, change the date. You will then also have to go back and EDIT the entry and change the "Date Acquired" as well, or TT will throw an error.

JRJ

Best answer by Vanessa A

The instructions for form 8936 clearly state to "Enter 8/15/2022 if you qualify and elect to apply the transition rule"

So, the correct procedure if you entered into a written binding contract prior to August 16, 2022 and took delivery by the end of 2022, is to enter 8/15/2022 as the date that the vehicle was placed in service.

Vanessa AAnswer

The instructions for form 8936 clearly state to "Enter 8/15/2022 if you qualify and elect to apply the transition rule"

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cube1Author

Thanks. At the time I downloaded my form 8936 instructions PDF, I *think* that they were dated January 2022 - I don't *think* that the revised instructions were there at that time. The updated instructions (January 2023) have this language in them, which makes it much more clear what is going on.

(The comment about having to go back and edit if one changes the date on the message I referred to in my post is presumably still relevant. 😉 ).