Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Mar 7, 2024 2:24:59 PM

Clean Vehicle Credit on TurboTax Business 2023

TurboTax Business Desktop 2023 doesn't seem to have any questions related to Clean Vehicle Credit if an electric car is purchased by the S-Corp? I thought S-Corps need to file the Form 8936 to claim the 7.5K credit, is that correct?

 

And does the income threshold of 150K also apply to the S-Corp or its shareholders, even if it's a 100% business vehicle?

0 3 806
1 Best answer
Level 15
Mar 8, 2024 3:07:59 PM

The last I checked, you are correct that the S-corporation program does not have the required form.  You might need to use different software or go to a tax professional.

The credit is passed to the shareholders via the K-1.  It is on their personal tax return (Form 1040) where the AGI limit is applied to see if they qualify for the credit or not.

3 Replies
Level 15
Mar 8, 2024 3:07:59 PM

The last I checked, you are correct that the S-corporation program does not have the required form.  You might need to use different software or go to a tax professional.

The credit is passed to the shareholders via the K-1.  It is on their personal tax return (Form 1040) where the AGI limit is applied to see if they qualify for the credit or not.

Level 2
Mar 9, 2024 9:32:04 AM

If the credit is passed to the shareholders personal Form 1040 via the K-1, then would the North America Final Assembly Requirements also apply in addition to the AGI Income Limit, even though it's a commercial vehicle purchased by the S-Corp?

Level 15
Mar 9, 2024 11:33:35 AM

Now you seem to be asking about the "Qualified Commercial Clean Vehicle Credit" on Form 8936-A, which is slightly different than the Clean Vehicle Credit on Form 8936.

 

I'm not sure if that is in the 1120-S program or not.