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
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Here are the rules
To qualify, a vehicle must meet all of these requirements:
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:
Also, the credit is nonrefundable so married filing jointly you need a tax liability of at least $8000
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?
@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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