6 results for tag: Inflation Reduction Act


2023 Last-Minute Vehicle Purchases to Save on Taxes

Questions: Do you need a replacement business car, SUV, van, or pickup truck? Do you need tax deductions this year? Do you need a tax credit to offset what you owe to the IRS? If you answered yes to any of these questions, you need to examine this article and get ready to smile. Thanks to the Tax Cuts and Jobs Act (TCJA), you can write off the full business cost of certain vehicles, 89 percent of other vehicles, and up $20,200 for other vehicles. If you plan on purchasing an electric vehicle or a plug-in hybrid electric vehicle, you may qualify for a tax credit of up to $7,500. Get the Timing Right Don’t procrastinate. If you ...

Tax Credits for Your Electric Vehicles: The Latest from the IRS

After a many-month-long wait, the IRS has finally issued its proposed regulations for the new clean vehicle tax credit and the commercial clean vehicle credit. With this new IRS guidance and its previous guidance, we have answers to most of the questions about how Electric Vehicle (EV) credits work. The credits are available for qualifying fully electric cars, plug-in hybrid EVs (PHEVs), and fuel cell vehicles. There are four ways you can potentially benefit from a federal tax credit for an EV you place in service in 2023 or later: Purchase an EV, and claim the clean vehicle credit. Lease an EV, and benefit from the lessor’s EV ...

$80 Billion to the IRS: What It Means for You

For the business owner and tax practitioner, the most important part of the Inflation Reduction Act of 2022 was not the tax credit for flashy new electric cars. It was something much more basic: a long-term budget commitment to help the struggling, failing IRS. ...the new funding will impact all taxpayers. The average taxpayer should benefit because the IRS will be able to upgrade its operations and improve its woeful levels of service The Inflation Reduction Act invests an additional $80 billion in the IRS over the next 10 years. This is the biggest budget increase the IRS has ever received. To put this in perspective, it is ...

New Law Improves Energy Tax Benefits for Biz Owners and Landlords

The newly enacted Inflation Reduction Act contains tax credits and depreciation benefits for owners of commercial property and residential rental properties. If you implement various types of renewable energy improvements, you can qualify for hefty tax credits or deductions. Caution: The rules are complex. That said; bear with the rules because the benefits are worthwhile. Business Energy Investment Tax Credit The Business Energy Investment Tax Credit (ITC) is used primarily for solar panel installations on commercial buildings and residential rentals. The ITC has been available and continues for small wind power installations, Fuel ...

Buying an Electric Vehicle? Know These Tax Law Changes

Are you thinking of buying an electric vehicle or a plug-in hybrid? And are you looking to benefit from the $7,500 tax credit? If so, you have much to consider—thanks to the newly enacted Inflation Reduction Act. The Electric Vehicle Credit for 2022 The maximum $7,500 credit for fully electric cars or plug-in hybrid electric vehicles that applies to both business and non-business vehicles remains in place through December 31, 2022, subject to one significant change. The Significant Change Begins August 17, 2022 Electric vehicles purchased and placed in service after August 16, 2022, qualify for the tax credit only if they are ...

New Law: Business Tax Credits for Your Electric Vehicle Purchases

Three things to know about this new law: The existing electric vehicle tax credit that applied to both business and personal vehicles remains unchanged from January 1 to August 16, 2022. The new and difficult North America assembly rules apply from August 16 through December 31, 2022, and require tax planning if you want to buy an electric vehicle this year. Beginning in 2023, buying an electric vehicle for your business escapes the draconian rules that haunt 2023 personal-use electric vehicle purchases. What’s the Deal for the Remainder of 2022? Here’s what you need to consider for the remainder of 2022: The 200,000-vehicle ...