Tax planning/investing/car buying question:
Buy a used 2017 Nissan Leaf (about 15k and 15,000 miles)
or buy a new one (more like 32k, maybe a little less) to get the $7500 tax credit and 2 more years of battery warranty.
Our federal tax liability was only about 3k last year and I anticipate similar this year, so I was thinking I'd convert as many of our IRAs as possible to Roths to inflate our AGI. Our state doesn't appear to have any incentives, though AEP Ohio has one, which I need to ask the Nissan dealer about.
We do have cash on hand to cover either purchase. I'd only finance if it was 0% APR and came with some incentive to finance.
We are in the 15% tax bracket currently, though converting $25k of tIRAs into Roths might push some of our income into a higher tax bracket. We are probably at least 15-20 years out from my retirement. He's 42 and I'll turn 37 this year. I'm the income earner and he stays home with the kids.
I'm not sure how to evaluate the benefits of wiping out future tax now (but for a larger initial cash outlay) vs how much that tax might someday grow to be if we did not do this and converted our IRAs later or not at all...
WWYD? Other option I haven't thought of?