topic Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit in Deductions & credits

Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

SDPrime — Wed, 30 Dec 2020 15:17:23 GMT

Can I take credit in 2020 tax filing if the date purchased and date placed in service is not until 2021? Say I will have the vehicle by April 15, 2021.

Re: Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

DJS — Wed, 30 Dec 2020 16:14:01 GMT

Use Form 8936 to figure your credit for qualified plug-in electric drive motor vehicles you placed in service during your tax year. For most people the current tax year is 2020, not 2021, unless you operate on a different fiscal year basis.

Generally, anyone can adopt the calendar year. However, if any of the following apply, you must adopt the calendar year.

You keep no books or records;
You have no annual accounting period;
Your present tax year does not qualify as a fiscal year; or
You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. For further information see https://www.irs.gov/businesses/small-businesses-self-employed/tax-years#:~:text=A%20%E2%80%9Ctax%20year%E2%80%9D%20is%20an,and%20reporting%20income%20and%20expenses.&text=Fiscal%20year%20%2D%2012%20consecutive%20months,last%20day%20of%20a%20month.

The following requirements must be met to qualify for the credit.

You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
You placed the vehicle in service during your tax year.
The vehicle is manufactured primarily for use on public streets, roads, and highways.
The original use of the vehicle began with you.
You acquired the vehicle for use or to lease to others, and not for resale.
You use the vehicle primarily in the United States.

Re: Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

SDPrime — Wed, 30 Dec 2020 16:45:10 GMT

Thank you for your prompt response.

This vehicle is for personal use not for business or investment. Dealer can't deliver the vehicle until next month or so (2021).

My question is can I take the credit on my 2020 tax return?

For IRA I can contribute until April 25, 2021, I think.

Re: Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

dmertz — Wed, 30 Dec 2020 17:13:47 GMT

No.

The credit for a vehicle put in service in 2021 will appear on your 2021 tax return.