Major mistake by (CPA!) with Commercial Clean Vehicle Tax Credit

[willstarck]

That mostly looks correct, but line 16 should be blank (autofilled?) what about your main 8936?
Do you get an error code from the IRS when the return is rejected?

This is the error message I get:

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[willstarck]

I dont think there should be anything at all in part IV where you have $4,000 since there is something there I think it's like you are applying for a used vehicle tax credit, is this vehicle used?

it is autofilled for whatever reason.

I am only filling out part 5. I bought 2 new Teslas and 1 used Tesla in 2024. I am trying to claim commercial credit for all 3. My understanding is the used Tesla still qualifies for $7500 since it is used commerically (even though, again it is used).

My question is, I bought the vehicles under my personal name, not a business name. My understanding is this is a non-factor and purchasing the vehicle under a business name or LLC is NOT a requirement to successfully claim the commercial credit.

 

[Aleks]

it is autofilled for whatever reason.

I am only filling out part 5. I bought 2 new Teslas and 1 used Tesla in 2024. I am trying to claim commercial credit for all 3. My understanding is the used Tesla still qualifies for $7500 since it is used commerically (even though, again it is used).

My question is, I bought the vehicles under my personal name, not a business name. My understanding is this is a non-factor and purchasing the vehicle under a business name or LLC is NOT a requirement to successfully claim the commercial credit.

That right there is the issue, I'm not clear on the used guidelines but none of us with success were trying to do this for a used car. I don't think used vehicles qualify for the commercial credit, but I could be wrong.

 

[mongo]

This is the error message I get:

That error doesn't line up with the commercial credit. Whether poor explaining by TurboTax (wrobg text for error), or it's submitting a 30D instead of 45W.

it is autofilled for whatever reason.

I am only filling out part 5. I bought 2 new Teslas and 1 used Tesla in 2024. I am trying to claim commercial credit for all 3. My understanding is the used Tesla still qualifies for $7500 since it is used commerically (even though, again it is used).

My question is, I bought the vehicles under my personal name, not a business name. My understanding is this is a non-factor and purchasing the vehicle under a business name or LLC is NOT a requirement to successfully claim the commercial credit.

Used vehicles do qualify for the commercial 45W credit, but only if they did not previously get a 30D or 45W credit.
There is also the potential issue that an older vehicle may not have it's VIN registered with the IRS.

 

[willstarck]

That error doesn't line up with the commercial credit. Whether poor explaining by TurboTax (wrobg text for error), or it's submitting a 30D instead of 45W.


Used vehicles do qualify for the commercial 45W credit, but only if they did not previously get a 30D or 45W credit.
There is also the potential issue that an older vehicle may not have it's VIN registered with the IRS.

thanks for the reply. I don’t think I have anything on the commercial side wrong. The issue is Tesla never submitted my VINs to the IRS database, so my return gets auto rejected.

question for you guys - when purchasing your commercial use Tesla, did you purchase it as a business or as personal via Tesla terms (even though it was intended for business use)?

Tesla says I filled out the pre-delivery questionnaire as personal, and not business. They are telling me because I filled out the questionnaire as personal and not business, they cannot retroactively change this. Basically Tesla will not submit the VINs to the IRS database and there is no way to get around this auto rejection from Turbo tax.
Am I SOL here? This seems ridiculous I’m missing out on over $20K of credits because I didn’t purchase as a business from Tesla’s perspective.

 

[Aleks]

That error doesn't line up with the commercial credit. Whether poor explaining by TurboTax (wrobg text for error), or it's submitting a 30D instead of 45W.


Used vehicles do qualify for the commercial 45W credit, but only if they did not previously get a 30D or 45W credit.
There is also the potential issue that an older vehicle may not have it's VIN registered with the IRS.

I imagine very very few Electric vehicles didn't get a 30D credit, since it used to be pretty easy to get, so chances are it's already been claimed for him VIN

 

[Aleks]

thanks for the reply. I don’t think I have anything on the commercial side wrong. The issue is Tesla never submitted my VINs to the IRS database, so my return gets auto rejected.

question for you guys - when purchasing your commercial use Tesla, did you purchase it as a business or as personal via Tesla terms (even though it was intended for business use)?

Tesla says I filled out the pre-delivery questionnaire as personal, and not business. They are telling me because I filled out the questionnaire as personal and not business, they cannot retroactively change this. Basically Tesla will not submit the VINs to the IRS database and there is no way to get around this auto rejection from Turbo tax.
Am I SOL here? This seems ridiculous I’m missing out on over $20K of credits because I didn’t purchase as a business from Tesla’s perspective.

First you need to seperate out which credit for which vehicle is being rejected, all 3 credits? Just the commercial used vehicle? What model and year of vehicle is it?

 

[Aleks]

The IRS doesn't need Tesla to enter anything at the point of sale for commercial tax credit. So no it should have nothing to do with what was entered at time of purchase. Only thing that matters is Tesla entered the VIN during the time of manufacturing which from what we know they did for all of them.

thanks for the reply. I don’t think I have anything on the commercial side wrong. The issue is Tesla never submitted my VINs to the IRS database, so my return gets auto rejected.

question for you guys - when purchasing your commercial use Tesla, did you purchase it as a business or as personal via Tesla terms (even though it was intended for business use)?

Tesla says I filled out the pre-delivery questionnaire as personal, and not business. They are telling me because I filled out the questionnaire as personal and not business, they cannot retroactively change this. Basically Tesla will not submit the VINs to the IRS database and there is no way to get around this auto rejection from Turbo tax.
Am I SOL here? This seems ridiculous I’m missing out on over $20K of credits because I didn’t purchase as a business from Tesla’s perspective.

 

[Baldyloxx]

…this (confusion) is by design

 

[willstarck]

The IRS doesn't need Tesla to enter anything at the point of sale for commercial tax credit. So no it should have nothing to do with what was entered at time of purchase. Only thing that matters is Tesla entered the VIN during the time of manufacturing which from what we know they did for all of them.

Unfortunately Turbo tax doesn’t explicitly tell me which one gets denied, or if all 3 did.

Vehicles:

2021 Tesla Model S Plaid, Bought in 2024 (this one was never eligible for personal claim, so I don’t think anyone has claimed it)

2024 Tesla Model 3 performance x2, Bought in 2024

bought M3 performances were over the MSRP cap, so Tesla never bothered filing a clean vehicle form or anything like that . But obviously that doesn’t matter for commercial claim.

 

[Aleks]

Look I know you feel like Tesla did something wrong, I get it, I was convinced by my tax guy that was the case too. But in reality they almost certianly didn't do it wrong. Until i realized that and stopped fighting Tesla and instead started looking into what was done wrong at the time of filing, I didn't get anywhere. The fact there is 4,000 in that previously mentioned section is a dead giveaway you have it filed wrong. Im pretty sure that section is for used non commercial vehicles.

Unfortunately Turbo tax doesn’t explicitly tell me which one gets denied, or if all 3 did.

Vehicles:

2021 Tesla Model S Plaid, Bought in 2024 (this one was never eligible for personal claim, so I don’t think anyone has claimed it)

2024 Tesla Model 3 performance x2, Bought in 2024

bought M3 performances were over the MSRP cap, so Tesla never bothered filing a clean vehicle form or anything like that . But obviously that doesn’t matter for commercial claim.
[/QUO

Unfortunately Turbo tax doesn’t explicitly tell me which one gets denied, or if all 3 did.

Vehicles:

2021 Tesla Model S Plaid, Bought in 2024 (this one was never eligible for personal claim, so I don’t think anyone has claimed it)

2024 Tesla Model 3 performance x2, Bought in 2024

bought M3 performances were over the MSRP cap, so Tesla never bothered filing a clean vehicle form or anything like that . But obviously that doesn’t matter for commercial claim.

 

[willstarck]

Look I know you feel like Tesla did something wrong, I get it, I was convinced by my tax guy that was the case too. But in reality they almost certianly didn't do it wrong. Until i realized that and stopped fighting Tesla and instead started looking into what was done wrong at the time of filing, I didn't get anywhere. The fact there is 4,000 in that previously mentioned section is a dead giveaway you have it filed wrong. Im pretty sure that section is for used non commercial vehicles.

That might be a turbo tax thing, where it’s auto populated for whatever reason. I’ll try generating a blank form and see if it’s populated…

 

[Aleks]

That might be a turbo tax thing, where it’s auto populated for whatever reason. I’ll try generating a blank form and see if it’s populated…

Maybe post up everything you answered because how you answer the questions is where the efile will send you in the form automatically, also there needs to be seperate forms for each vehicle im pretty sure.

 

[mongo]

Tesla says I filled out the pre-delivery questionnaire as personal, and not business. They are telling me because I filled out the questionnaire as personal and not business, they cannot retroactively change this. Basically Tesla will not submit the VINs to the IRS database and there is no way to get around this auto rejection from Turbo tax.

They might have filled it as a 30D then? Cybertruck was ineligible for 30D last year so couldn't have that problem. I filed under my name (sole proprietor).

2021 Tesla Model S Plaid, Bought in 2024 (this one was never eligible for personal claim, so I don’t think anyone has claimed it)

This might be an issue since the VIN would not have been submitted as eligible under the new rules, but the error still doesn't line up.

 

[Batman357]

Has anyone had success getting Tesla to file their vehicle on the ECO portal? I cannot get anyone at the store to help me. All of the phone numbers direct me back to the store.

Same here and local Tesla told me they were not going to do anything.

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