How To Configure the Lightning For A Tax Credit

[Losi]

Pretty soon we’re going to be able to brew our own over roasted coffee out of the back of an F-150, or even out of the frunk. Did Ford mention yet how many espresso machines can be powered off all the outlets combined? Can’t wait for a steaming hot cup of frunk coffee.

Did you just say espresso machine?!?! I’ve got a ‘78 Olympia Cremina lever and I’ve toyed with the idea of converting the Lightning to a mobile coffee shop.

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[Sdctcher]

I have been thinking about all the political indigestion that has been underway the past month surrounding the BBB legislation. I now believe that somebody misread the tide and missed the boat. The BBB may pass in some way but only in an extremely slimmed down version. The EV Tax Credits/Rebates we were all hoping for should not be counted on. This is only my opinion. I would love "Free" money but this legislation is supposed to be good for "America".

I am still going to buy a Lightning in 2022. I reserved in the first 10 hours but I think anyone who Reserved in the first week has a good chance in 2022. Changes to the BBB may force many Reservists who counted on $12,500 and a Rebate to reconsider, making room for others down the line.

I am making plans to be forced to wait until tax time 2023 to get my $7,500 Tax Credit and I am structuring my 2022 income accordingly. My plan, since I am older than 72, is to withdraw my annually-required RMD withdrawal from my IRA at a much higher amount. I want to use the entire $7,500 Tax Credit. Under current income projections I would owe about $5,000 so I will draw out another $10,000 ir so in order to match my tax liability to the current $7,500.

I can do this because I use my accounting background and spreadsheets to project. Perhaps others could talk to their tax preparers and shift 2021 income to 2022, prepay liabilities, or do their own retirement withdrawals (hopefully, without penalties). You have until December 31, 2021 to do this.

If my predictions are completely wrong it would make little difference in the long run. I have until December 31, 2022 to make the withdrawal. But if I am correct, I will be able to claim the entire $7,500. Of course, the "Average Joe", who has neither the assets nor income to use tax avoidance strategies, cannot do this. But business owners and retirees have a chance. Also, if the BBB does get passed, the 30% business deduction for EVs may well survive.

 

[shutterbug]

I am making plans to be forced to wait until tax time 2023 to get my $7,500 Tax Credit and I am structuring my 2022 income accordingly. My plan, since I am older than 72, is to withdraw my annually-required RMD withdrawal from my IRA at a much higher amount. I want to use the entire $7,500 Tax Credit. Under current income projections I would owe about $5,000 so I will draw out another $10,000 ir so in order to match my tax liability to the current $7,500.

If you don't actually need the money that additional withdrawal would provide, a better option may be a Roth IRA conversion. That way you would still need taxable income in order to take advantage of the full tax credit, but your money would continue to earn income tax free.

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