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keithl1
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EV Tax Credit and vehicle expense for self employed

Hello, I have a full time job and I'm also a licensed Realtor on the side. I bought a Tesla that is qualified for the full $7500 Clean Vehicle Credit in 2023. I used the vehicle mainly for my Real Estate business (~80%). Can I claim the $7500 Clean Vehicle Credit and also claim the purchase in the vehicle expense for my business? Thanks!

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EV Tax Credit and vehicle expense for self employed

Yes.  However, the credit ($7500) reduces the "Basis" (cost).  That means when you are in the business section and entering the information about your vehicle, you enter $7500 less than it actually cost.  However, if you are using the Standard Mileage Rate, that won't really make a difference until you sell the vehicle.

 

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