[GregAZ22]

Now that taxes can be filed, it may be helpful to have a discussion on those who had a written a binding agreement and what the process has been like. If you had a written binding agreement for a 22 ID4, please include the following information.

1. What was the nature of your written binding agreement? Did you put 5% down on the car, or what other specifics did you use?

2. When did you take delivery of the vehicle? There is some indication from the IRS that vehicles delivered after 1/1/2023 will not work with written binding agreement provision.

3. What additional documentation did you have to provide to the IRS? Copy of the written binding agreement? Receipts?

4. Did the IRS accept your return/ process the 7500 rebate?

 

[AWD Or Nothing]

Had an agreement, but not planning to use it as I ended up with a 2023. There was no further deposit made, it didn't feel like a bonafide commitment to purchase with any funds at stake. Dealer seemed to back off on suggesting the agreement was worth anything after the IRS guidance came out. If I had ended up with a 2022 I probably would have filed for the credit knowing that in an audit I could point to the agreement as a justification, but suspect that it wouldn't have stood up to scrutiny and the credit might have been reversed if that happened.

 

[CrzJms]

Had an agreement, but not planning to use it as I ended up with a 2023. There was no further deposit made, it didn't feel like a bonafide commitment to purchase with any funds at stake. Dealer seemed to back off on suggesting the agreement was worth anything after the IRS guidance came out. If I had ended up with a 2022 I probably would have filed for the credit knowing that in an audit I could point to the agreement as a justification, but suspect that it wouldn't have stood up to scrutiny and the credit might have been reversed if that happened.

Agreed... Seemed like badinfo.com when it was suggested....

In our state, all deposits are refundable; its a consumer protection, so the fact that a person would enter into a non refundable binding contract for a vehicle despite law is silly.
We will see how it goes though with those that took that path.

 

[VW Dave]

As a.bystander, the whole binding contract scenario has always seemed more than a little sketchy/shaky to me.

 

[Mrau]

With a written binding contract (WBC) and a delivery date after 8/16/2022, it appears you should enter your delivery date as 8/15/2022 on tax Form 8936. Not your actual delivery date. Believe this is because the IRS treats all WBC cars as being delivered the day before the IRA Act went into effect.

On Turbo Tax, they ask for Date Acquired and Date Placed in Service for the Form 8936 Worksheet. TT will have you change the date to 8/15/2022 if you have a WBC.

Turbo Tax does not have the final Form 8936 yet, however they expect it on 2/09/2023.




Screenshot of sample Worksheet:

Screenshot of sample IRS Form 8936