Quote:
Originally Posted by K32 Camaro
How about you buy the volt for said price and sell it for 35k to support the gas and mod price of the 5th gen? Also sell the '02. The 5th gen makes an awesome DD and anything that hurts it can always be replaced.
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Because that isn't how the $7,500 credit works. You get to take the credit on your taxes to go toward WHAT YOU OWE. Let's say when all is said and done you owe $2,000 to the IRS that is how much of the credit you get to use. You don't get a refund of $5,500 from the govt. In fact you get zero refund at all. All it does is reduce your amount owed and most people after all credits they already get do not owe anywhere near $7,500.
I never owe taxes. Always get a refund. So buying a volt would net me NOTHING tax wise if all taxes / deductions remained the same as last year.
The best way to make it the most advantageous is look at your prior taxes and see what your liability has been. If similar expected next year then simply reduce your withholdings to keep more cash in your pocket each week and run up a $7,500 tab. This would allow you to deduct the entire $7,500 worth of the credit.