Resale value on competition

[Phil-Springs]

Where does it say you have to keep it 6 months?

Here is the exact irs language “The vehicles must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States. For purposes of the 30D credit, a vehicle is not considered acquired prior to the time when title to the vehicle passes to the taxpayer under state law.”

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[Socalsp3]

Here is the exact irs language “The vehicles must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States. For purposes of the 30D credit, a vehicle is not considered acquired prior to the time when title to the vehicle passes to the taxpayer under state law.”

So you use it for a few months don't like it and decide to sell it. It's not like you're flipping cars every week.

 

[Maquis]

Where does it say you have to keep it 6 months?

It doesn’t.

 

[dmastro]

Where does it say you have to keep it 6 months?

It doesn't. People attach their own interpretations to the code all the time.

From the actual IRS code:

(d) New qualified plug-in electric drive motor vehicle. For purposes of this section--

(1) In general. The term "new qualified plug-in electric drive motor vehicle" means a motor vehicle--

(A) the original use of which commences with the taxpayer,

(B) which is acquired for use or lease by the taxpayer and not for resale,

(C) which is made by a manufacturer,

(D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act,

(E) which has a gross vehicle weight rating of less than 14,000 pounds, and

(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which--

(i) has a capacity of not less than 4 kilowatt hours, and

(ii) is capable of being recharged from an external source of electricity.

Edit: Can't get the section to indent for clarity, but there it is

 

[RickMachE]

As far as the Tax credit goes, there are two things to consider.
Number one is that you have to " Intend " to keep the vehicle for 6 months.
The 2nd is that it is a Credit, not a deduction. If you were to take 3 credits in
the same year, you would have to OWE around $22,000 to the IRS in taxes.
If not, I don't believe that it carries forward to next year.

1) 6 month period is in your mind only
2) Your tax liability needs to be $7,500 x 3 = $22,500 (for 3 credits). You don't have to OWE anything. You could have a tax liability of $40,000, withhold $50,000, take the full credit, and then get back $40,000 - $50,000 - $22,500 = $32,500 from the IRS.

 

[Phil-Springs]

So you use it for a few months don't like it and decide to sell it. It's not like you're flipping cars every week.

Open for interpretation and I’m no lawyer, but I’d say as long as you use the car after you buy it you are okay. Aside from a scenario where you buy it, park it , put the for sale sign on it.. you probably have entered the gray area.

 

[SigSauer]

I’m not currently planning on flipping anything. I’m considering all my options, but don’t want to buy a different car to have the same problems or take a bath if I decide to take my MME order in a few months.

I guess I should just cross my fingers and hope there’s nothing really wrong with my current car and wait for my 22 to come in.

McKenna, We received our 2022 MME two weeks ago and it's been flawless with almost 1,000 miles. Wait for the 2022 then sell your 2021. It's possible you may be able to sell your 2021 MME for more then you paid!

 

[FLmac]

McKenna, We received our 2022 MME two weeks ago and it's been flawless with almost 1,000 miles. Wait for the 2022 then sell your 2021. It's possible you may be able to sell your 2021 MME for more then you paid!

I‘m just going to keep my 21 until my 22 comes in. I love this car and while I may love something else just as much I don’t want to put in the effort. I should be able to almost break even on my 21 even with paying a $2500 ADM.

 

[voxel]

FYI... A friend is reselling his Ioniq 5 SEL RWD (mid trim) that he paid $3K markup on back a few months ago and all online dealers have only offered $46-48K so basically after taxes and markup and subtracting the $7500 tax credit he while just break even. He's only selling because he accepted delivery on a Model Y that he ordered last fall.

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