Considering buying a Select while waiting for GT order

JediGamerCT

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Hey everyone,

I had a wild idea this morning - what if I bought a Select before 2021 ended, while we continue to wait for our GT or Premium we have on order.

This would ensure I could get the tax credit for 2021 (no matter what the legislators do).

Then we could trade or sell it when one of our orders comes through.

Thoughts?
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RickMachE

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There are many posts on this. If you buy a Select with the intent of reselling / trading it in, then technically you aren't eligible for the tax credit. Of course, the IRS doesn't know that's what you intended to do all along, but you may want to talk to your tax preparer first.

The vehicles must be acquired for use or lease and not for resale.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
 

agoldman

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Well every car you buy is intended for selling or trading at some point. So what is it. A day, a week a month, 6 months, a year? I had ordered a GT in 2/20. So I bought at FE in February and traded in November. Of course I will take both tax incentives. I suppose if you are a car flipper of sorts, then you can't take the incentive. Aside from that, there is no hgarde must keep at least x days language that I have seen anywhere.
 
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JediGamerCT

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Craig
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There are many posts on this. If you buy a Select with the intent of reselling / trading it in, then technically you aren't eligible for the tax credit. Of course, the IRS doesn't know that's what you intended to do all along, but you may want to talk to your tax preparer first.

The vehicles must be acquired for use or lease and not for resale.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
I’m not sure of this, but I think what the IRS means is don’t buy it to take the tax credit and then sell it right away. We would of course be using it for some period of time, but if the IRS doesn’t specify how long you have to own it before parting with it, I don’t see the harm in driving it for awhile until the one I actually want becomes available. But yes, probably wise to consult a tax adviser on this.

Thanks!
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