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Bought used Tesla for business 2023

I bought used Tesla model 3 2014 for business $20k

 

I can’t claim EV? Since it’s used and probably original owner already claimed it. But I thought credit is given when car isn’t for resale. Since it was sold, does original owner payback and new owner gets it? 


if not, can I buy new Tesla for $40k, get $7.5k credit and sell it?

 

 

I can’t deduct it as section 179 since it’s less than 6k lbs?

what else can deduct as car expense? I known about the miles, small expense.

looking big ticket items deductions

 

3 Replies

Bought used Tesla for business 2023

Here are the rules

To qualify, a vehicle must meet all of these requirements:

  • Have a sale price of $25,000 or less (credit is 30% of sales price up to the max of $4k)
  • Have a model year at least 2 years earlier than the calendar year when you buy it. For example, a vehicle purchased in 2023 would need a model year of 2021 or older.
  • Not have already been transferred after August 16, 2022, to a qualified buyer. 
  • Have a gross vehicle weight rating of less than 14,000 pounds
  • Be an eligible FCV or plug-in EV with a battery capacity of least 7 kilowatt hours
  • Be for use primarily in the United States

A list of currently qualified vehicles which will change over time. 

Manufacturers and Models of Qualified Used Clean Vehicles | Internal Revenue Service (irs.gov)

The sale qualifies only if:

  • You buy the vehicle from a licensed used car dealer 
  • For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS.

 

Also, the credit is nonrefundable so married filing jointly you need a tax liability of at least $8000

 

 

 

Bought used Tesla for business 2023

Does $25k applies to used car? Because new Tesla is $40k

 

$8k tax liability is before withholding or after all adjustments/credits and total tax due must be $8k?


I did buy it from used dealer (not Tesla)

 

didn't answer my question about Tesla?

Bought used Tesla for business 2023

@stech - suggest reading through these FAQs for all your questions

 

https://www.irs.gov/credits-deductions/used-clean-vehicle-credit

 

Does $25k applies to used car? Because new Tesla is $40k.  For used cars, sales price has to be $25,000 or less to qualify for the tax credit, 

 

$8k tax liability is before withholding or after all adjustments/credits and total tax due must be $8k? I think @Critter-3 mis-typed.  The maximum tax credit is $4000 for a used EV.  It's 30% of sales price, but a maximum of $4,000.  The tax credit is non-refundable, which means that Line 22 of Form 1040 BEFORE applying the credit must be at least $4,000 to capture the entire credit. 


I did buy it from used dealer (not Tesla) - great that is part of the requirement for the EV credit on a used car.  However, Tesla is not on the list of qualified used EVs 

 

https://www.irs.gov/credits-deductions/manufacturers-and-models-of-qualified-used-clean-vehicles

 

 

 

 
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