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2022 INFLATION REDUCTION ACT
The Inflation Reduction Act (IRA) signed into law on August 16, 2022 provides green energy incentives by implementing new credits, and by expanding current credits such those for the electric vehicles or residential energy property. Some provisions are going to be effective in 2023. The Federal government is investing in clean energy for the next decade.
VEHICLE CREDITS
The Inflation Reduction Act (IRA) rename the existing credit and create two new credits:
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Clean Vehicle $7,500 maximum credit. $3750 if the vehicle satisfied domestic content requirements for critical minerals in the battery and $3750 for battery components.
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Previously Owned Clean $4,000 Vehicle maximum credit.
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Qualified Commercial Clean Vehicle $7,500/$40,000 dependent on vehicle weight. Vehicle must be depreciable. and used for production of income.
ENERGY CREDITS
The Inflation Reduction Act, signed into law on August 16, 2022, provides for green energy incentives:
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Residential Energy Efficient Energy Property (REEP): This includes solar electric, fuel cell, geothermal heat pump, solar hot water, and so on.
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Qualified Energy Efficient Improvements included exterior doors, exterior windows, insulation materials, or systems that reduce heat loss/gain.
VIRTUAL CURRENCY
According to the IRS, Virtual Currency is treated as a property, a digital asset.
For 2023, 1040 a rewording of the crypto question is:
"At any time during 2023, did you:(a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?"
REQUIRE MINIMUM DISTRIBUTIONS
Taxpayers must begin taking RMD at the require beginning date (RBD) from qualified plans and traditional IRAs. For sample:
If the taxpayer reaches 72 after 2022 and 73 age before 2033 or born between 1951-1959; start RMDs, after reaching age 73. In other words, taxpayers turning age 72 in 2023 don't have to to start taking RMDs until they reach age 73.