GA Issue-On A Lighter Note

[MsTabbyKats]

I have a client in GA.  Nice guy...PhD is rocket science type of guy.

 

He bought a zero emisssion car (hey...I'm from NYC...we don't have cars here) and he sent me a certificate showing a $5000 GA credit.

 

I did the return....his tax was about $3000...so the credit covered the entire tax liability.

 

Then he asked me about using the $2000 for next year.  I looked all over the form.  Didn't see anything about carry-overs  from last year or to next year.  I read the GA booklet...and it didn't say anything about this.  I called the GA tax dept....and the rep never heard of this.

 

But...my client insisted that his friend got this carryover.

 

Long story short (after many google searches)....on the GA Environemental page it mentions this carryover.

 

So....after several calls....I finally got connected to "the right person".

 

This credit does indeed carry over for up to 5 years  There is no line for it on the tax return.  You (the client or preparer) have to keep  track.of how much credit is left, until it's used up.  The GA Environment Dept. keeps the certificate on file.

 

Weird....  It's one of those things that "how would you know unless you know".

[rfassett]

Reminds me of a scholarship credit that was floated here in PA a few years back for Corporate entities making scholarship contributions.  S-Corps squawked that they wanted some of the pie too and now we have the Individual Tax department at the State involved. They did not have a clue.  I had two S-Corps that got involved.  After the first year I told them that if they did that again, they would have someone else doing their work.  I spent countless hours on the phone trying to educate the Individual Tax Department.  The credit carried over for five years.  It was not until the fourth year that any mention of the credit appeared on the PA40.  It was an absolute disaster.  And I do not know how you fared, but my entire efforts, beyond the prep fee, were gratis. How do you bill the client for the State's ineptness? 

[MsTabbyKats]

I just hope I don't lose this one....if he wants someone more familiar with GA.

Really nice guy, easy to work with...and generally a 2 W-2 and one child in daycare return.

[Don in Upstate NY]

He bought a zero emisssion car (hey...I'm from NYC...we don't have cars here) and he sent me a certificate showing a $5000 GA credit.

 

Well we do have cars in Upstate NY, and NY also had a credit for buying a hybrid.  And unlike GA, the unused portion of the credit seems to roll on forever.  Special form (IT-253) that cannot be e-filed, but must be attached as a .pdf (if your software allows it.)

 

Anyone care to hazzard a guess  an opinion as to how much of the unsed credit would carry over from a MFJ return when one of the taxpayers dies?

[MsTabbyKats]

Good thing I'm not upstate....my software doesn't have IT-253

 

Guess 1:

You have to figure out the % of usage of each spouse...and that part rolls over

 

Guess 2:

$0

(Just a guess based on NY wants to keep the $$$)

[MsTabbyKats]

Nobody else guessed!

 

So...I looked at the IT-253, and at least it  has "carryover" lines.

 

The instructions don't have anything about "death of a spouse".  But, there is a lot about beneficiaries and about "recapture".

 

Now...I think a car is only owned by one person (again...we don't have cars here...and last time I owned a car I was single).

 

My guess is: It depends on whose name the car is in.  If the owner died, part of the credit has to be recaptured.

 

If the owner lives...he's entitled to "whatever".

 

And, that's my final answer.