Is there any limit on the number of ev tax credits

[MisterSofa]

Let’s say I have X amount of dollars to buy 10 EVs. Am I able to get 10 $7500 tax credits? I know I need enough taxable income to be able to take advantage of the credits. With the stock market in a free fall. It seems like an easy way to make 10% on your money.

Sponsored

 

[RickMachE]

No limit.

But you can't just flip them and be in compliance with the rule.

 

[P. T. Magoo]

Gotta figure you'll be paying sales tax on all those cars though.

 

[MisterSofa]

No limit.

But you can't just flip them and be in compliance with the rule.

What’s the rule?

 

[RickMachE]

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

 

[TRP]

And you would need to have the tax liability to use each credit...........it's not just free money

 

[AlpaChino]

And the leeches come out...

 

[highland58]

Let’s say I have X amount of dollars to buy 10 EVs. Am I able to get 10 $7500 tax credits? I know I need enough taxable income to be able to take advantage of the credits. With the stock market in a free fall. It seems like an easy way to make 10% on your money.

If you have a tax bill of $75,000, that would work. You would probably need to be making at least $500,000 a year to owe that much taxes.

 

[SpaceEVDriver]

Some states have a requirement that you license yourself as a dealer if you sell more than some number of vehicles in a year.

In Arizona, an individual may sell up to six vehicles before they are required to register as a used car dealer. And there's a fine if you go over that number before registering, in the amount of $1000-$3000 per vehicle. You're also required to hold a $100,000 surety bond.

So, you'd have to face down likely depreciation, registration, and insurance losses associated with having to hold onto the vehicles for too long.

Things like this always sound better than reality.

 

[BMT1071]

My understanding is that you are not eligible for the tax credit if you buy the vehicle with the intention of selling it. Consult your tax professional.

 

[MisterSofa]

And you would need to have the tax liability to use each credit...........it's not just free money

If you have a tax bill of $75,000, that would work. You would probably need to be making at least $500,000 a year to owe that much taxes.

i know that.

 

[MisterSofa]

Gotta figure you'll be paying sales tax on all those cars though.

Still making money after taxes

 

[MisterSofa]

If you have a tax bill of $75,000, that would work. You would probably need to be making at least $500,000 a year to owe that much taxes.

Ok

 

[ChuckA]

Print IRS information notice IRC 30D about the electric vehicle tax credit. It will tell you everything you need to know.

 

[MisterSofa]

No limit.

But you can't just flip them and be in compliance with the rule.

So I can purchase them

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

so I can pay cash and receive the credits. What’s flip them mean if I pay the tax.

Sponsored