Did you have to purchase or register your truck under your S-corp's name to qualify for the federal tax credit? Also, were you also able to get the Colorado Innovative Truck tax credit for $5K? It's explained here:
I did! Getting the full $12,500 ($7500 + $5k CO). Oh… and the Feds give a credit for installing EV chargers too ?
But why does it qualify if purchase in the year of 2023? Check it out!
In 2024 part of the law activated and the imported Chinese cathodes used in the 4680 cells made the truck ineligible for any Clean Vehicle Credit. Tesla has now switched to in-house cathodes and so it's back to being eligible.
Dude, you are literally saying that the EV tax credit, if taken at point of sale, functions as a refundable credit if it exceeds the recipient’s tax liability for the year. You are saying it is akin to the Earned Income Tax Credit (one of the few refundable credits). Use all the semantics and out-of-context snippets and clips of partial instructions all you want - the FACT is that to avoid a clawback, you must BOTH have AGI below the limit AND owe at least $7,500 in total income tax for the year of purchase. This isn’t close. Miss the AGI limit, you lose all of it. Miss the tax limit, you lose the portion that falls above your tax liability for the year. Again, I’m a CPA - this is not so hard.The clawback is if you are not eligible for the credit, meaning your income for both the year it was put into service and previous year were over the threshold. There is no clawback if your tax liability is less than the transfered credit (what I was talking about, "that" meaning having any income/ tax liability, not refering to so much income they don't qualify)
To end up in this clawback situation one would have needed to assert they expected their income in the year it was placed in service was going to be under the MAGI limit because they would already know their income the previous year was over the threshold. Then, their income for the year placed in service would need to have exceed the threshold.
Per Form 8936, if you exceed the income cap in both years you go to line 8d which says:
Yes. Stop here. You can’t claim a clean vehicle credit for this vehicle. If line 4a is “Yes,” check the box on line 4b and report the amount from line 4a on Schedule 2 (Form 1040), line 1b.
Which is
b Repayment of new clean vehicle credit(s) transferred to a registered dealer from Schedule A (Form 8936), Part II. Attach Form 8936 and Schedule A (Form 8936)
If you do meet AGI limits: the form says:
No. If you transferred the credit amount to the dealer at the time of sale, stop here and see instructions. Otherwise, go to line 8e
Only if you didn't do a transfer do you proceed to 8e and continue to line 13
Subtract line 11 from line 9 in Part II. Stop here and include this credit amount on line 9 in Part III of Form 8936
Form 8936 lines 9-13 are the calculations to limit credit to liability. In a transfer, there is no use of this section.
To make such a claim would be tax fraud, plain and simple. There can be no wheels attached to a battery that qualifies for the credit. And good luck getting Tesla to certify it for that purpose and provide the necessary paperwork. Claim it if you want but live knowing that such fraud survives the normal 3-year look back for audit purposes.
To receive the commercial EV tax credit ownership can be individual, corporate, partnership, any form of titling. The only requirement is that it be used in a business as a tool of that business. You can by a CT and take the credit personally as long as you have a Schedule C, Schedule F, LLC, even K-1 income from a business in which you actively participate (no passive investments help here). It may be a little “safer” from an IRS perspective to register in a corporate name, but it is not required.
It is simple, and you are wrong.
It is virtually in the law. I cannot help you further. Reading comprehension 101.
There is no "virtually" regarding law. Either it is there or it isn't, in this case it isn't.
Yeah I don’t know about titling, but my accountant made clear right before I bought it that the purchase agreement/bill of sale must have my company’s name as the purchaser. Tesla said they would register it in the same name as the purchaser. So we left it at that.
This is what I thought. The tax credit is taken at the time of sale, and in traditional dealerships the $7,500 is deducted from the sale. Not sure how Tesla handles this since they don't have a dealership. The dealership applies the credit themselves from the government.
That is not true!your profile says: Retired
it's Tax Credit
so, you are not eligible
On the Tesla website where you can purchase a new Cybertruck, they give you the option to deduct the $7,500 from the purchase price.
