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Tag Archive for Holiday Gifts With Tax Benefits

Holiday Gifts With Tax Benefits

Charles Woodson - Holiday Gifts With Tax Benefits

Some holiday gifts you provide to members of your family, employees and others may also yield tax benefits. Here are some examples:

Electric Car Credit – If you purchase an electric car as a holiday gift for your spouse or even yourself, you will find that most come with a tax credit of up to $7,500. To qualify to claim the credit on your 2018 tax return, the car will have to be “placed in service” by December 31, 2018. So merely ordering the vehicle, even if payment for it is made at the time when the order is placed, won’t be enough – you will need to receive the car and start using it before New Year’s Day. But before you leap, you should know that the credit is non-refundable, meaning it can only offset your actual tax liability and that any excess credit over your tax liability will be lost. There is, however, an exception when the electric vehicle is used partially for business, in which case the portion of the credit allocated to the business use will become a general business credit that is carried back one year and then carried forward.

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