topic I put down a deposit on an electric car (Rav Prime) with Toyota on Aug 1st. The car will arrive in 2023. Can I claim the federal tax credit on my 2023 taxes? in Deductions & credits

I put down a deposit on an electric car (Rav Prime) with Toyota on Aug 1st. The car will arrive in 2023. Can I claim the federal tax credit on my 2023 taxes?

619taxes2018 — Tue, 10 Mar 2026 07:27:08 GMT

Re: I put down a deposit on an electric car (Rav Prime) with Toyota on Aug 1st. The car will arrive in 2023. Can I claim the federal tax credit on my 2023 taxes?

DoninGA — Tue, 06 Dec 2022 22:09:38 GMT

When you receive the title to the vehicle you will be the owner. If that occurs in 2023 then you can claim the EV credit on the 2023 tax return you file in 2024.

Re: I put down a deposit on an electric car (Rav Prime) with Toyota on Aug 1st. The car will arrive in 2023. Can I claim the federal tax credit on my 2023 taxes?

619taxes2018 — Tue, 06 Dec 2022 22:16:31 GMT

Are you aware of the Inflation Reduction Act? I would like to know from a tax accountant or IRS official what kind of contract the IRS is going to require in order for an electric vehicle from outside the U.S. to qualify for the $7500 rebate.

Re: I put down a deposit on an electric car (Rav Prime) with Toyota on Aug 1st. The car will arrive in 2023. Can I claim the federal tax credit on my 2023 taxes?

NCperson — Tue, 06 Dec 2022 22:36:25 GMT

https://rsmus.com/insights/tax-alerts/2022/irs-issues-guidance-on-transition-rules-for-ev-credits.ht...

read this article.

was your deposit at least 5% of the value of the automobile?

axpayers who entered into written binding contracts to purchase otherwise eligible vehicles prior to Aug. 16, 2022 but take possession of the vehicle on or after Aug.16, 2022 may claim the EV credit based on rules in effect before Aug. 16, 2022. It is important to note that the North American final assembly requirement did not apply before Aug. 16, 2022. In other words, a credit for an otherwise eligible vehicle, the assembly of which takes place outside of North America, may still be claimed if a taxpayer takes possession after Aug. 16, 2022 so long as the buyer had a binding contract in place before the date of enactment. The IRS has issued guidance accordingly.

Guidance from the IRS helps clarify what will be respected as a written binding contract. Specifically, the IRS has stated they will look to see whether taxpayers have made a significant non-refundable deposit or down payment on a vehicle as an indicator of a binding contract. Generally, for tax purposes, a down payment or deposit of at least 5 percent of the total contract price is an indication of a binding contract, according to recent IRS guidance.

Re: I put down a deposit on an electric car (Rav Prime) with Toyota on Aug 1st. The car will arrive in 2023. Can I claim the federal tax credit on my 2023 taxes?

DoninGA — Tue, 06 Dec 2022 22:37:02 GMT

US Department of Energy website - https://www.fueleconomy.gov/feg/taxevb.shtml

If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022, (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022.
If you purchased a qualifying electric vehicle on or before August 16, 2022, and placed it in service before January 1, 2023, you may claim the EV credit based on the rules that were in effect before August 16, 2022.

As stated - If you take title to the vehicle in 2023 then the EV credit is entered on a 2023 tax return.