Arcimoto, the real thing? ($12k tandem EV trike, 70/130 mi. range)

[redpoint5]

I'm sure it's been discussed and I've forgotten already, but what is the battery size, and does this qualify for the federal tax credit?

[JSH]

Originally Posted by redpoint5

I'm sure it's been discussed and I've forgotten already, but what is the battery size, and does this qualify for the federal tax credit?

It qualifies for the Federal Electric motorcycle tax credit which is 10% of the purchase price up to $2500 max.

It also qualifies for $2500 from Oregon

[redpoint5]

Wait, I can get up to $5k off a E-motorcycle! I need to shift my priorities.

[Fat Charlie]

Doooo Eeeeet.

Tax subsidies are great, if you can remember to qualify for one that lobbyists already bought.

When I called my wife from the doctor's office parking lot to let her know that she was right and I did have rheumatoid arthritis, she said "I'm so sorry. You know this means we're getting a hot tub, right?" As a capital expenditure for health reasons, it went on the FSA, pre-tax. I have to buy bromine with regular money, though.

[JSH]

Originally Posted by redpoint5

Wait, I can get up to $5k off a E-motorcycle! I need to shift my priorities.

The Oregon rebate is based on battery size and the Arcimoto is the only motorcycle that gets the full rebate. The rest are $750

I also don't see it in your character to spend $25,000 on a new motorcycle to get a $2500 federal tax credit.

[Xist]

People often tell me to spend one or multiple thousands on something with the justification that it is a tax deduction.

Right. Allegedly I could get a Yaris for $16,605 and right now I am only paying 12% taxes, so I would save $1,992.60 if I totally only use it for work, but I would still be out $14,612.40, plus tax, title, license, sonic shield, free lunch for the manager, and interest.

[redpoint5]

Tax law is way too complex to dive into for your particular situation, but there's many ways to reduce tax liability legally.

If your company reimburses you for miles driven, you get nothing. If they don't reimburse you for miles driven, you probably are eligible for the federal tax compensation for miles driven. If you own a business then you can depreciate (claim a tax deduction based on a percentage of the cost) a new or used vehicle over several years.

It's possible that any unclaimed tax credit can be carried over successive years. For example, my parents purchased a solar system and 26% of their cost is tax deductible. Since they don't have enough tax liability in a single year, they will apply the credit over multiple years until it's used up. They have 20 years to use the credit.

Home office deductions are pretty strict. They basically have to be close to 100% dedicated to business. No storing clothes, sleeping, etc.

There are ways to artificially boost tax liability too for times where a credit cannot be carried over. For instance, you can convert a portion of a traditional IRA fund into a Roth. On paper it appears you've made the amount of money you converted. I'll be developing a strategy soon to have some money in a Roth just for that occasion in the future where I need quick tax liability to benefit from a credit.

[Fat Charlie]

Originally Posted by redpoint5

There are ways to artificially boost tax liability too for times where a credit cannot be carried over.

Now I feel dirty just for knowing that.

[redpoint5]

I have a friend that described paying his children to do chores with pre-tax money into a dedicated account, and then as custodian of the account, determining how best to spend it on behalf of the children. Apparently allowable by tax code, though I haven't looked into it.

Our taxes are progressive from a bottom line, straightforward perspective, regressive when you start digging into the ways wealthier people can avoid paying taxes, and very regressive for those more informed/intelligent/curious/attentive about how to position oneself to game the system. Bureaucrats, CPAs, IRS employees, and tax attorneys are the only ones that benefit in the end.

No political party will talk about this on the whole though, because they are both playing the same game from different sides.

[Xist]

I think the agency is supposed to reimburse for certifications. They do not reimburse for mileage, so I always claim from my first client to my last client, except for the many times that I only see one client. Since March I can claim everything since I have a dedicated office, but I have also hardly seen any clients in-person, and all of them are in-town.

Meet Kevin often talks about depreciating something instead of deducting it. He says that it doesn't count against your income that way.