I'm filing my taxes using Turbo Tax Home and Business. I'm filing jointly and my AGI is higher than the IRS limit for the EV credit. However I purchased this vehicle for my LLC and I'd like to claim this credit for my business. I can't seem to find a way to do this using the software.
I'm a sole proprietor of my LLC, so I'm doing a passthrough to report my taxes (not reporting a separate return for my business).
Is there anyways I can still claim this credit?
Yes, you may be able to claim the Clean Vehicle Credit for an electric vehicle used for business. This topic appears under Deductions & Credits >> Cars and Personal Property.
Use the search box in the upper right of the TurboTax header and enter "energy efficient vehicle." Hit Enter, then click the jump-to link to go directly to that topic. As you answer the questions about your vehicle, look for the page "Tell Us More About Your Plug-In..." and check the box for "This vehicle is used for business." Enter the percentage business use in the box that appears.
I don't think that quite works. I'm stuck on the page that blocks me because it thinks that my MAGI is above the limit for the credit. Once I enter my MAGI, the next page says I'm not eligible and ends the entire dialogue. I have also tried to fill out the corresponding form (8936) by hand, but Turbo tax prevents me from filling that section out as well.
But I'm reading from IRS that I should be able to apply this as a nonrefundable credit towards my business earnings. Is there a way to do this through turbo tax?
@Masaki_Andoh - Would really appreciate if you can share conclusion to this thread. Were you able to clain the tax credit and if yes, how were you able to navigate through Turbo tax to claim that credit.
TurboTax is correct that the sole-proprietor's MAGI is a factor even when this credit is claimed as a business credit instead of as a personal credit. Section 30D(c)(1) of the tax code provides that the amount that can be claimed as business credit can only be the amount that would otherwise be permitted as a personal credit.