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Deductions & credits
The credit will be zero on the tax return if it was transferred to the dealer. I understand how it could be confusing.
At your income level and for a new car the credit is $7,500, for your situation. Below is the rules should you have a 'Recapture Event'.
Recapture event —
(i) In general. A recapture event occurs if, within 3 full years from the date a qualified electric vehicle is placed in service, the vehicle ceases to be a qualified electric vehicle. A vehicle ceases to be a qualified electric vehicle if—
- (A) The vehicle is modified so that it is no longer primarily powered by electricity;
- (B) The vehicle is used in a manner described in section 50(b); or
- (C) The taxpayer receiving the credit under section 30 sells or disposes of the vehicle and knows or has reason to know that the vehicle will be used in a manner described in paragraph (b)(2)(i)(A) or (B) of this section. (ii) Exception for disposition. Except as provided in paragraph (b)(2)(i)(C) of this section, a sale or other disposition (including a disposition by reason of an accident or other casualty) of a qualified electric vehicle is not a recapture event.
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February 8, 2025
1:11 PM