Advice on Selling Mach-E FE Early

[KAustin]

So accounting for the $7500 federal tax credit, you're $6300 ahead. Wow. I might have to look into it, I wouldn't mind upgrading to a GT for next to nothing ?

Forgive my ignorance, are all FE's equipped with AWD and the extended battery?

Yes.

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[fayt349]

Yes.

But do you still get the tax credit if you don't own the car at the end of the year

 

[agoldman]

But do you still get the tax credit if you don't own the car at the end of the year

yes, as long as you are not seen as "flipping" the car just for the tax credit.

 

[TRP]

But do you still get the tax credit if you don't own the car at the end of the year

Don't believe that matters. You purchased it, you get the credit

 

[RedStallion]

I wasn't aware of that. I figured all states were the same in that regard.

Yeah, that would make sense, except that the states are greedy and common sense means nothing. In California we pay over 9% sales tax and it's never refunded. So as soon as you signed the contract you already lost 9%.
On top of that you would lose about $1000 on registration and other fees. Also you can get clean vehicle rebate in California only once. That's another $2000 loss. So if you trade a car you bought for $50k the moment after signing the deal you would have already lost $7500. Perhaps other incentives are also limited, so likely the loss will be bigger.

 

[RedStallion]

But do you still get the tax credit if you don't own the car at the end of the year

That's really a murky situation. When the IRS audit those case we will know.

 

[agoldman]

That's really a murky situation. When the IRS audit those case we will know.

Nothing murky about it. Unless someone can show me where it says if you don't own the car 12/31/21 you can't get the credit, or you have to own a minimum amount of days, you get the tax credit. State laws will not affect this either. Many people have looked at this and unless they change the law moving forward, I think it is still a pretty safe assumption for this year at least, plus, you can take more that one credit per year if you buy more cars same year.

 

[Griddlez]

So accounting for the $7500 federal tax credit, you're $6300 ahead. Wow. I might have to look into it, I wouldn't mind upgrading to a GT for next to nothing ?

Forgive my ignorance, are all FE's equipped with AWD and the extended battery?

Yea I basically got to drive the car for free and then some. And yes, they are "fully loaded". The only option I believe that was even available to add to the First Editions was the interior protection package. (270 bux I think?).

 

[Griddlez]

Nothing murky about it. Unless someone can show me where it says if you don't own the car 12/31/21 you can't get the credit, or you have to own a minimum amount of days, you get the tax credit. State laws will not affect this either. Many people have looked at this and unless they change the law moving forward, I think it is still a pretty safe assumption for this year at least, plus, you can take more that one credit per year if you buy more cars same year.

I talked to my tax place on this. The word is unless I purchased it with the intention of selling then it is not an issue. I had no intention of selling it when I purchased it.. I just wanted a Mach-E really bad at the time lol. Per them, I will be able to claim the credit for both the GT and the FE (as long as I have tax liability paid in for that much).

 

[RedStallion]

I talked to my tax place on this. The word is unless I purchased it with the intention of selling then it is not an issue. I had no intention of selling it when I purchased it.. I just wanted a Mach-E really bad at the time lol. Per them, I will be able to claim the credit for both the GT and the FE (as long as I have tax liability paid in for that much).

Intention of selling is determined by selling. In the end, it's the IRS who will be interpreting the law. You can sue them if you want to waste even more money. As I said, until we hear the results of audits nothing is obvious here.

 

[GoGoGadgetMachE]

In the 1900's.

[checks calendar]
what?

oh wait I see what you were answering, never mind

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