Another "free electric cart" website

[strangmusic18]

I ran this by my accountant before I did anything.

First the deal just has to be DONE before the 31'st. I don't have to take delivery.

It is a tax CREDIT. It is not a deduction.

I'm buying two carts...a 6 seater and a 4 seater.

total with freight $13,988.06. Pay with a credit card now.

I get $12,993.06 BACK on my '09 taxes. File in January, get a check in March.

Total out of pocket for two brand new nice carts $995.

Loan me some money and I'll do it...

[Shane]

Here's how I understand it.

A deduction is subtracted from your income, so it's 'only' worth what your marginal tax rate multiplied by the amount comes to. If you get a $5k deduction and your marginal tax rate (% tax gets higher with more income) were 30% it would be worth $1,500 to you.

A tax credit is applied to the amount of taxes you owe and is subtracted dollar for dollar.

I'm not a CPA and not qualified to offer tax advise or services.

I wonder what happens if you say you'll go to AZ and pick it up yourself?

Somebody in the Archery Trade Association needs to get them to include new bows in a program like this- it makes about as much sense as the car program in my opinion.

Right. Big difference between a deduction and a credit.

I assume these particular carts are made in China?? I've not heard good things about Chinese-made golf carts, but I don't know if that would apply to this particular brand or not. They may be good quality, or they may not be I guess.

Still, I just can't bring myself to do it. I'd been planning on getting some of my tax money back, but it just leaves a bad taste in my mouth somehow. Probably shouldn't.

[Ellis]

This is from the website's FAQ.

9. If the tax credit for the vehicle exceeds my Federal tax liability, will I get the difference in the form of a refund? No. However, in the case of vehicles purchased for a C-Corp business use, credits in excess of Federal tax liability can be carried back 1 year and carried forward 20 years.

[cosmiccowboy]

Right. Big difference between a deduction and a credit.

I assume these particular carts are made in China?? I've not heard good things about Chinese-made golf carts, but I don't know if that would apply to this particular brand or not. They may be good quality, or they may not be I guess.

Still, I just can't bring myself to do it. I'd been planning on getting some of my tax money back, but it just leaves a bad taste in my mouth somehow. Probably shouldn't.

They are supposedly made in Oklahoma. Maybe just "assembled" there, I don't know.

I have literally paid hundreds of thousands of taxes over the years and just don't feel guilty about taking advantage of this one.

[cosmiccowboy]

This is from the website's FAQ.

In my case I will have paid/owed that much for '09 so I didn't have to worry about it, but I'm pretty sure an individual can carry a credit forward as well.

[Mike D]

I ran this by my accountant before I did anything.

First the deal just has to be DONE before the 31'st. I don't have to take delivery.

It is a tax CREDIT. It is not a deduction.

I'm buying two carts...a 6 seater and a 4 seater.

total with freight $13,988.06. Pay with a credit card now.

I get $12,993.06 BACK on my '09 taxes. File in January, get a check in March.

Total out of pocket for two brand new nice carts $995.

I don't know Cosmic, I see it the way Bill does. I think all it is going to do is reduce your taxable income by the amount you spend, much like if you were putting that money into an IRA or some other pre tax shelter.

I would get a 2nd opinion if I were you. I can't see the gov't shelling out that kind of money for a golf cart.

[innergel]

I ran this by my accountant before I did anything.

First the deal just has to be DONE before the 31'st. I don't have to take delivery.

It is a tax CREDIT. It is not a deduction.

I'm buying two carts...a 6 seater and a 4 seater.

total with freight $13,988.06. Pay with a credit card now.

I get $12,993.06 BACK on my '09 taxes. File in January, get a check in March.

Total out of pocket for two brand new nice carts $995.

I'll give you $995 for the four seater. That way you get a 6 seater for nothing.

[Shane]

They are supposedly made in Oklahoma. Maybe just "assembled" there, I don't know.

I have literally paid hundreds of thousands of taxes over the years and just don't feel guilty about taking advantage of this one.

I hear ya. I'm not knocking anyone at all for jumping on board. Probably if I really needed a cart, I'd be more enthusiastic. I don't need one on my lease, and I don't have a good place to keep one around my house anyway.

[strangmusic18]

I'll give you $995 for the four seater. That way you get a 6 seater for nothing.

You little genius you...

[flywise]

if this is anything like the cash for clunkers program and I assume it is. who ever takes advantage of this is going to see a nice tax bill in the mail.

[Bill]

Mike, I do agree with Cosmic, it's a credit so he'll reduce his tax liability by $12,993. Assuming he would owe a minimum of $13k in federal taxes, it will reduce his taxes. As far as getting it back, it depends on how much withholding for taxes you had over the year.

See my quote below- isn't this another small dose- the government deciding which industries/ companies 'win' and make money based on their priorities and not the needs of the market?

[Raleigh]

Ahhh

The water still murky. I was told by my CPA that is a a dollar for dollar credit. If I owe nothing in 09 taxes I would still get the credit in form of a refund check. My CPA advised that the only thing not clear is if the credit is subject to income limits aka child tax credits.

If you are one of the blessed to be in the higher brackets you may be subject to a reduce amount of credit aka child tax credit. The 09 form has not been released yet and that has me worried and holding off.

I talk with 2 people and get 2 different answers. The devil is in the detials or for this matter in the IRS tax form which of course is not printed yet. If there is anyone that can verfiy that the creidt will not be subject to income limit please share the details.

I want one bad. Also check out the Star Car at Houston Golf Carts. These qualify and look to be better equipemnt (also more expensive). They are sold out but will take orders in 09 to get you the credit.

[cosmiccowboy]

I don't know Cosmic, I see it the way Bill does. I think all it is going to do is reduce your taxable income by the amount you spend, much like if you were putting that money into an IRA or some other pre tax shelter.

I would get a 2nd opinion if I were you. I can't see the gov't shelling out that kind of money for a golf cart.

I know it sounds crazy but the government DID pass it...here's the IRS info...

http://www.irs.gov/businesses/articl...214841,00.html

http://www.irs.gov/irb/2009-26_IRB/ar07.html

[Sparkles]

I have literally paid hundreds of thousands of taxes over the years and just don't feel guilty about taking advantage of this one.

I hear you on that note last year was a really good year for my wife and I, come April it seemed like we did more the IRS than ourselves by the time we mailed the check to them, which fortunately we knew we would have to so we stashed some money, we paid more in taxes than we made this year. So I am not feeling all that guilty if I jump either.

[JAP]

This seams like the first time homebuyers tax credit. It is not a credit they actually send you an $8000 check. Some guys at work did this and not only did they get the $8000 the government paid them interest on it from the time they filed it until they sent the check. So they both got a check for over $8200. This all seems like a stupid waste of taxpayers money but would not blame anyone for taking advantage of the deal.