Selling EV same year as purchased, still able to use the EV Tax Credit?

[evanryu1124]

Hi, I sold it to Algo.com but didn't go forward as I wasn't sure about getting the tax rebate. They quoted me 48k which is about 6k less than the current msrp+destination fee. The car is in service and hope they can fix the noise issue.

[BenMog]

Thanks for the prompt response, will be checking them out.

[BenMog]

Hmm, just checked the site, it's not coming up to be a car buying website

[evanryu1124]

sorry the correct address is https://algonation.com/

[BenMog]

Thank you

[manohar567]

is this still applicable this year? I bought a Tesla this year in the month of March and trying to sell it now. Confused If i Would be eligible to claim Tax Credits

[NCperson]

As long as it was eligible when you purchased it is all that matters. Nothing says you lose the benefit if you sell 

[Mike9241]

 For purposes of the new clean vehicle credit, a new clean vehicle is a clean vehicle placed in service on or after January 1, 2023, that is acquired by a taxpayer for original use. In addition, to qualify for the credit, the vehicle:

• Cannot be acquired for resale; 

so it's the intent when you bought it.  

[manohar567]

Thanks for the answer Mike. I have called IRS customer support yesterday and asked the same question. The guy said I have to keep the car until I file my Taxes to be able to claim. any thoughts how I can prove later?

[NCperson]

@manohar567 why are you selling the car so shortly after purchasing it? 

[Mike9241]

when you purchased it didn't you get paperwork from the dealer? That's all you need because it will show the purchase date and other relevant info for claiming the credit.  As the current law stands as long as you didn't buy it for resale you get the credit even if you sell it 3 months later. you can file anytime in 2024 once the 2023 tax return filing season opens.    the agent needs to go back to class. 

[manohar567]

Hi @NCperson I recently lost my job and cant pay my EMIs

[manohar567]

even if I Manage to pay until end of the year, I am afraid that Tesla will continue slashing prices on their vehicles reducing the resale value.

[NCperson]

then when you boiught it, it was your intent to hold on to it and not immediately re-sell it.  

[manohar567]

@NCperson 

Yes Thats Correct, Only question is how to prove that if IRS challenges my intent while filing my Taxes