$7,500 Federal Tax Credit Questions

[Terry]

1) Does the dealer give you something for this to use when preparing you taxes?
2) Does anyone know if you can only get this one time only or one time per year or multiple times in a year? My Mache should be in any day now but my husband wants one too so we are wondering if we should wait until 2022

Thank you in advance

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[DBC]

1) Does the dealer give you something for this to use when preparing you taxes?
2) Does anyone know if you can only get this one time only or one time per year or multiple times in a year? My Mache should be in any day now but my husband wants one too so we are wondering if we should wait until 2022

Thank you in advance

1. The dealer doesn't give you anything. You have all the information.

2. You can use any number of tax credits. That's what lessors do. However, the credits don't roll into the next year so you have to be able to use them in the year you get the car.

 

[CHeil402]

1) Does the dealer give you something for this to use when preparing you taxes?
2) Does anyone know if you can only get this one time only or one time per year or multiple times in a year? My Mache should be in any day now but my husband wants one too so we are wondering if we should wait until 2022

Thank you in advance

1) No, I don't believe they give you anything special. You just need to fill out Form 8936 when you fill out your taxes. https://www.irs.gov/forms-pubs/about-form-8936

2) Yes, you can use as many as you want. Each credit is tied to a VIN. So one per car. Just make sure you have enough tax liability to claim multiple credits in the same year.

 

[agoldman]

What if you sell or trade the car in the same year that you are taking the credits? Any difference?

 

[MailGuy]

No impact from selling (to original purchaser). Paperwork/proof is surprisingly basic.

 

[Maquis]

What if you sell or trade the car in the same year that you are taking the credits? Any difference?

The only stipulation is that you do not qualify for the credit if you buy the vehicle with the intention of reselling it. It's unclear how this would be verified. Consensus seems to be that you can still claim the credit even if you get rid of the car. Presumably, if you were audited and the IRS could somehow prove that you bought the car with the intent to resell it, they would deny you the credit.

 

[Woeo]

No impact from selling (to original purchaser). Paperwork/proof is surprisingly basic.

if your intention is to not keep the car you may not qualify for the credit.

 

[Ned]

if your intention is to not keep the car you may not qualify for the credit.

I have heard that the new bill in congress will only have a tax credit for cars made in America. Will that kill the credit for the MME made in Mexico??

 

[timbop]

I have heard that the new bill in congress will only have a tax credit for cars made in America. Will that kill the credit for the MME made in Mexico??

You misheard. The bill would keep $7500 for ALL plugin cars until they account for 50% of sales. There would be an EXTRA $2500 for made-in-USA cars, and another $2500 for made-in-USA by union labor cars. So the Mach E would get $7500, Teslas $10000, and the F-150 lightning $12500

 

[Ned]

You misheard. The bill would keep $7500 for ALL plugin cars until they account for 50% of sales. There would be an EXTRA $2500 for made-in-USA cars, and another $2500 for made-in-USA by union labor cars. So the Mach E would get $7500, Teslas $10000, and the F-150 lightning $12500

Thanks for this info.

 

[timbop]

Thanks for this info.

You're welcome. I have a feeling that there is no chance for that to pass; maybe the $7500 but I tend to doubt even that given the mood in washington

 

[ChuckA]

1) No, I don't believe they give you anything special. You just need to fill out Form 8936 when you fill out your taxes. https://www.irs.gov/forms-pubs/about-form-8936

2) Yes, you can use as many as you want. Each credit is tied to a VIN. So one per car. Just make sure you have enough tax liability to claim multiple credits in the same year.

Technically the dealer does give you something. You get a sales order or bill of sale that shows you as the owner and has the vin on it when you complete the purchase. Ford Options show you as the owner but a lease shows Ford Credit as the owner. The credit is claimed on the form noted above. If a vin is claimed by 2 different parties, expect the IRS to contact you for proof.

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