Can you give your EV credit to someone else?

KadeBR

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Was wondering, if it's possible to give my EV credit to someone else, with rising gas prices and expected to jump 30-40¢ in the next month. Debating about going full Electric This year, and I will be able to get the full Rebate for one but likely not the other. One idea I did have is if they co-sign I'd assume they should be able to?
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If they're on the title for the car, they can claim the tax credit. But I sure hope it's somebody you trust.
 

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It’s not a rebate, it’s a tax credit. Not transferable, I believe it is for registered owner. Best to check with tax attorney.
 
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KadeBR

KadeBR

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If they're on the title for the car, they can claim the tax credit. But I sure hope it's somebody you trust.
So likely yes having them co-sign would be the way to go so they'd be on the title, it would be a family member so it wouldn't be some person I vaguely know?.
 

generaltso

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So likely yes having them co-sign would be the way to go so they'd be on the title, it would be a family member so it wouldn't be some person I vaguely know?.
Make sure you don't have a falling out with them because you'll need their signature when and if you ever sell the car.
 


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Was wondering, if it's possible to give my EV credit to someone else, with rising gas prices and expected to jump 30-40¢ in the next month. Debating about going full Electric This year, and I will be able to get the full Rebate for one but likely not the other. One idea I did have is if they co-sign I'd assume they should be able to?
To claim the tax credit, one has to be the original owner of the vehicle. You cannot give tax credits to anyone else. If they're on the title of the car with you, that's not going to help, unless it's your wife, and you and her file separate returns. And then I would expect that the tax credit would be divided 50/50 between husband and wife, but that's a matter for your accountant.
 

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So likely yes having them co-sign would be the way to go so they'd be on the title, it would be a family member so it wouldn't be some person I vaguely know?.
Absolutely not.

Tax credit is claimed on your tax return. It's YOUR tax credit. You cannot give it to anyone else.
 

RickMachE

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If they're on the title for the car, they can claim the tax credit. But I sure hope it's somebody you trust.
They can claim THEIR tax credit. Not his.
 

RickMachE

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This is basically tax fraud. The other person can't buy the car and sell it to OP, that's not allowed. So, if they buy the car together, with the other person as the primary owner, they'd also have to be joint on the loan, or the other person only. Assuming all that gets approved, the other person would have to get the car insurance, which would be interesting since they are not driving the car nor having it at their household. If they lie on their insurance, the insurance company wouldn't have to cover anything. And, it's still tax fraud.

From the instructions for form 8936: https://www.irs.gov/instructions/i8936

The following requirements must be met to qualify for the credit.

  • You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
  • You placed the vehicle in service during your tax year.
  • The vehicle is manufactured primarily for use on public streets, roads, and highways.
  • The original use of the vehicle began with you.
  • You acquired the vehicle for use or to lease to others, and not for resale.
  • You use the vehicle primarily in the United States.
 
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KadeBR

KadeBR

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[ apE="RickMachE, post: 345074, member: 5324"]
This is basically tax fraud. The other person can't buy the car and sell it to OP, that's not allowed. So, if they buy the car together, with the other person as the primary owner, they'd also have to be joint on the loan, or the other person only. Assuming all that gets approved, the other person would have to get the car insurance, which would be interesting since they are not driving the car nor having it at their household. If they lie on their insurance, the insurance company wouldn't have to cover anything. And, it's still tax fraud.

From the instructions for form 8936: https://www.irs.gov/instructions/i8936

The following requirements must be met to qualify for the credit.

  • You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
  • You placed the vehicle in service during your tax year.
  • The vehicle is manufactured primarily for use on public streets, roads, and highways.
  • The original use of the vehicle began with you.
  • You acquired the vehicle for use or to lease to others, and not for resale.
  • You use the vehicle primarily in the United States.
[/QUOTE]
I see what your saying probably, would just be better off seeing how much tax liability, I could create if I did get two or wait tell next year to get the second, hoping my mach e shows up this year lol only order 9 weeks ago though.
 

Twilloo

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[ apE="RickMachE, post: 345074, member: 5324"]
This is basically tax fraud. The other person can't buy the car and sell it to OP, that's not allowed. So, if they buy the car together, with the other person as the primary owner, they'd also have to be joint on the loan, or the other person only. Assuming all that gets approved, the other person would have to get the car insurance, which would be interesting since they are not driving the car nor having it at their household. If they lie on their insurance, the insurance company wouldn't have to cover anything. And, it's still tax fraud.

From the instructions for form 8936: https://www.irs.gov/instructions/i8936

The following requirements must be met to qualify for the credit.

  • You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
  • You placed the vehicle in service during your tax year.
  • The vehicle is manufactured primarily for use on public streets, roads, and highways.
  • The original use of the vehicle began with you.
  • You acquired the vehicle for use or to lease to others, and not for resale.
  • You use the vehicle primarily in the United States.
I see what your saying probably, would just be better off seeing how much tax liability, I could create if I did get two or wait tell next year to get the second, hoping my mach e shows up this year lol only order 9 weeks ago though.
[/QUOTE]
Going on a little different line here, how can one tell if my dealer has used the 7500 tax credit and still sells the car as new. I got my mme with 400 miles on it and my salesperson said the GM used the car some. The title does not show it had any previous owner, just the dealership purchasing the car. But I have heard other horror stories. Is there a way to check vin to see it it has been used? thanks
 

Triggerhappy007

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Going on a little different line here, how can one tell if my dealer has used the 7500 tax credit and still sells the car as new. I got my mme with 400 miles on it and my salesperson said the GM used the car some. The title does not show it had any previous owner, just the dealership purchasing the car. But I have heard other horror stories. Is there a way to check vin to see it it has been used? thanks
The only ones that knows if the VIN has been claimed is the IRS and the person who claimed it. Contact the IRS or a tax professional for your answer.
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