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914World.com _ 914World Garage _ My 914 just made me some money!!

Posted by: sgomes Feb 27 2005, 01:32 PM

I just got done with my taxes. My 914 conversion qualifies for the electric vehicle tax CREDIT. Uncle Sam is going to give me back $1500!!!!!!!!! WOOOOOOOOOT!

Hmmm....lets see... McMark rustoration?.....Dr. Evil interior.....downpayment on a Otmar Zilla

Posted by: Otmar Feb 27 2005, 06:35 PM

Right on!
And I thought that was just for new manufactured ones.
Can you give a IRS pub number or some such so I can check it out?

Posted by: sgomes Feb 27 2005, 07:09 PM

Well, this is where things get a little dicey.... I went to H&R Block to figure this one out. IN THEIR OPINION, under "Cost of Vehicle" on form 8834 you can put down the value that someone would have to pay to buy the equivalent vehicle. i.e the cost of the donor car plus the cost of conversion components.

I'll probably say hi to Brad in jail if we're wrong on this one.

I'm keeping my fingers crossed.

Posted by: redshift Feb 27 2005, 08:02 PM

Oh my god, you aren't all just nuts, YOU'RE CRIMINALS!

911 guys have never been so much trouble.

M

Posted by: URY914 Feb 27 2005, 08:08 PM

Of all the members here, you two are the only ones making money with these silly cars.

Good for you!

Paul

Posted by: sgomes Mar 4 2005, 08:57 AM

Hey Otmar and anyone else who has an electric vehicle. Here is my final story. Things have changed a bit. Please note: I am not a tax professional. I don't know what the f%#@ I'm talking about. This information is for entertainment purposes only

Here is what H&R Block researched for me:

Pub 535 particularly pgs 45-46
Tax Regulation RIN 1545-AR23
IRSCode 30 and 179A

The upshot of the whole mess is that a converted car does not qualify as an electric vehicle for the purposes of the electric vehicle credit. HOWEVER, the relevant criteria for meeting the clean air vehicle deduction is that the vehicle must not meet the qualifications of the electric vehicle credit. And if this makes any sense to you at all you should stop

Soooooooo it qualifies for the clean air vehicle deduction which is $2000. It's a deduction and not a credit so that kinda sucks but at least it's not one of the itemized deductions so it doesn't get reduced if you have too many deductions. It just comes right off the top.

I need a

Posted by: URY914 Mar 4 2005, 09:19 AM

That explains it. I'm converting my car now.

What about 2 hamsters in a cage driving a flywheel?

Posted by: aircooledboy Mar 4 2005, 09:38 AM

Don't sweat it boys. That is a perfectly legit deduction. I do a small amount of tax law work, and I have seen this section used in similar fashion before.

It is an "above the line" deduction, so it comes off the top of your income before your tax due is calculated. The amount of money it puts in your pocket ends up being: "2000 x (effective tax rate)=$" For most folks, that would be right around $400, which is WAY more money than the rest of us will get for owning these sweet little rust seed cultures.

Posted by: Otmar Mar 4 2005, 11:42 AM

QUOTE (sgomes @ Mar 4 2005, 07:57 AM)
The upshot of the whole mess is that a converted car does not qualify as an electric vehicle for the purposes of the electric vehicle credit. HOWEVER, the relevant criteria for meeting the clean air vehicle deduction is that the vehicle must not meet the qualifications of the electric vehicle credit. :screwy: And if this makes any sense to you at all you should stop :toke:

Soooooooo it qualifies for the clean air vehicle deduction which is $2000. It's a deduction and not a credit so that kinda sucks but at least it's not one of the itemized deductions so it doesn't get reduced if you have too many deductions. It just comes right off the top.

Thanks for the details, I'll check those numbers out.

I really don't get it....
Wait, maybe I do...
OK, Now it all makes sense.

Posted by: Travis Neff Mar 4 2005, 12:16 PM

So if you do get some sort of credit, do know that you can re-do your taxes for up to the past 3 years with no problems, it's the law.

Posted by: RON S. Mar 4 2005, 12:27 PM

Congrats,

You are the first and prolly only among to ever make money on our 914's.

Ron

Posted by: sgomes Mar 4 2005, 01:52 PM

QUOTE (RON S. @ Mar 4 2005, 10:27 AM)
Congrats,

You are the first and prolly only among to ever make money on our 914's.

Ron

Hmmmm..... $20k+ into the car.... ~$2k back..... hmmmm Hey you're right I did make money on this thing!!!! rocking nana.gif

Just kiddin' yeah it does feel nice to get even a little bit back.