How long do I have to own the Mach-E to get the tax credit?

[Tommy303]

Sorry if this has been asked before, I'm frantically searching for answers. I've only owned my MME GT since the end of August, but I've been offered a good price for it. I wasn't planning on selling it, but the offer might be too good to pass up.

Since I've only owned the car for 2 and a half months, would I still be eligible for the tax credit? Or do I lose that credit once I sell it/trade it in? Is there a certain length of time that I need to own it to claim the credit?

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[generaltso]

There is no minimum length of time. You‘re fine.

 

[agoldman]

months fine., days maybe raise some irs eyebrows..

 

[DYohn]

You only have to title it during the tax year.

 

[Clicker]

months fine., days maybe raise some irs eyebrows..

Not true.

 

[RickMachE]

months fine., days maybe raise some irs eyebrows..

IRS has no idea you sold it...

 

[Mach1E]

IRS has no idea you sold it...

They can figure out whatever they need to if you get audited.

The entire tax system is the “honor system.”

Until get audited. Then you’re guilty until proven innocent.

That said, pretty sure if you didn’t buy it for the sole purpose of resale, you’re good. But like they said above, the shorter the time period the more you would get questioned in an audit.

 

[Tommy303]

I didn't buy it to sell it, however, I did also reserve the Lightning. I got out of a Raptor prior to the MME and now a stealership has a deal on a Shelby F-150 that might be too good to be true. I'm trying to figure out how they have the upper hand and thought that it might be the tax credit.

Thank you, everyone!

 

[Nklem]

My accountant told me as long as I did not buy it with “intent to sell it,” I will be fine. Just remember if you buy another EV, you need $15k in fed tax liability to use is all on your 2021 taxes.

 

[Pushrods&Capacitors]

Sorry if this has been asked before, I'm frantically searching for answers. I've only owned my MME GT since the end of August, but I've been offered a good price for it. I wasn't planning on selling it, but the offer might be too good to pass up.

Since I've only owned the car for 2 and a half months, would I still be eligible for the tax credit? Or do I lose that credit once I sell it/trade it in? Is there a certain length of time that I need to own it to claim the credit?

Someone finally got gapped by a 2.0T. ????

 

[Mach1E]

Someone finally got gapped by a 2.0T. ????

Don’t underestimate the 2.0!

 

[Tommy303]

Someone finally got gapped by a 2.0T. ????

???? Nope, no gappage here...I'll actually make about 10k if I decide to trade it and I'll finally have a Shelby F-150 to tow my GT-500.

 

[Mach1E]

???? Nope, no gappage here...I'll actually make about 10k if I decide to trade it and I'll finally have a Shelby F-150 to tow my GT-500.

Will you really make that much? Tax, tag, title, dealer fee……

Just sales tax on mine was $4200.

Oh and don’t forget the short term capital gains tax you’ll have to pay if you actually do profit on the sale.

https://blog.carvana.com/2020/03/what-to-know-about-taxes-when-you-sell-a-vehicle/

My gut says you aren’t actually netting as much as you think. But if you want a different vehicle, get a different vehicle.

 

[Tommy303]

Will you really make that much? Tax, tag, title, dealer fee……

Just sales tax on mine was $4200.

Oh and don’t forget the short term capital gains tax you’ll have to pay if you actually do profit on the sale.

https://blog.carvana.com/2020/03/what-to-know-about-taxes-when-you-sell-a-vehicle/

My gut says you aren’t actually netting as much as you think. But if you want a different vehicle, get a different vehicle.

Considering tax, yes you're right. I'm not making that much. I put a bunch down on my MME and I'm getting it back. The dealership is giving me MSRP for it, so I'm not making a profit over what I paid.

I'm just getting what I paid into it back out.

 

[generaltso]

Considering tax, yes you're right. I'm not making that much.

Check your state's rules on how sales tax is affected by trade-ins. Some states require you to trade-in at the dealer where you are purchasing your new car, some states allow you to sell the old car to anyone, and some states don't give you a break on the sales tax for trade-ins at all.

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