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

[ericr70]

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

Are you wanting to get the federal commercial EV tax credit of $7,500?

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[CyberFan20000]

Thank you all for valuable information you have shared!

Is there any update whether all tax returns claiming Commercial Clean Air Tax Credit are now getting processed with no issues? If so:
1. Did Tesla send all cybertruck VINs to IRS?
2. Or, did IRS just give up requesting evidence from cybertruck owners that their vehicles are eligible?

I plan to file my 2024 taxes tomorrow. Spent 2 hours talking with TurboTax advantage tax specialists. One said I don't qualify for commercial clean air tax credit because my cybertruck is not a commercial vehicle. She asked me series of questions whether there are 9 seats in the Cybertruck, whether vehicle needs CDL to be operated. Then she determined that answer is "no". The next one was more reasonable but did not know how to fill 8936 part V on TurboTax.

Some other questions:
1. Do I understand correctly that if I file my two rentals under schedules E (I am active participant and claiming QBI) and use cybertruck to perform handyman job for my rentals, then I can claim Commercial Clean Air Vehicle Tax credit?
2. Do I understand correctly that I need to adjust Commercial Clean Air Vehicle Tax credit by prorating 8936(Schedule A) Part V line 19 (cost basis) with business mileage portion?
3. And then when I enter Vehicle under my rental property I need to subtract the claimed Clean Air Vehicle Tax credit from Cost basis so the tax credit portion does not get depreciated?
4. And my rentals are limited as passive income (I am not real estate professional). Do I need to check on From 3800 Line 1aa 2 "... Check if all passive"?

Thank you so much!

 

[mongo]

Thank you all for valuable information you have shared!

Is there any update whether all tax returns claiming Commercial Clean Air Tax Credit are now getting processed with no issues? If so:
1. Did Tesla send all cybertruck VINs to IRS?
2. Or, did IRS just give up requesting evidence from cybertruck owners that their vehicles are eligible?

I plan to file my 2024 taxes tomorrow. Spent 2 hours talking with TurboTax advantage tax specialists. One said I don't qualify for commercial clean air tax credit because my cybertruck is not a commercial vehicle. She asked me series of questions whether there are 9 seats in the Cybertruck, whether vehicle needs CDL to be operated. Then she determined that answer is "no". The next one was more reasonable but did not know how to fill 8936 part V on TurboTax.

Some other questions:
1. Do I understand correctly that if I file my two rentals under schedules E (I am active participant and claiming QBI) and use cybertruck to perform handyman job for my rentals, then I can claim Commercial Clean Air Vehicle Tax credit?
2. Do I understand correctly that I need to adjust Commercial Clean Air Vehicle Tax credit by prorating 8936(Schedule A) Part V line 19 (cost basis) with business mileage portion?
3. And then when I enter Vehicle under my rental property I need to subtract the claimed Clean Air Vehicle Tax credit from Cost basis so the tax credit portion does not get depreciated?
4. And my rentals are limited as passive income (I am not real estate professional). Do I need to check on From 3800 Line 1aa 2 "... Check if all passive"?

Thank you so much!

If you mean the Commercial Clean Vehicle Credit (45W), Tesla submitted qualifying VINs.

Not advice:
1. Probably, Per IRS guidance, any business use qualifies
2. No prorating
3. Yeah, credit reduces basis (but you might be better off using mileage reimbursement instead)
4. ???

 

[CyberFan20000]

If you mean the Commercial Clean Vehicle Credit (45W), Tesla submitted qualifying VINs.

Not advice:
1. Probably, Per IRS guidance, any business use qualifies
2. No prorating
3. Yeah, credit reduces basis (but you might be better off using mileage reimbursement instead)
4. ???

With the "4." I meant on form 3800 Line 1aa where turbotax puts $7500 credit is a checkbox "Check if all passive".

This is probably more of a question whether Schedule E landlords (active participants, claiming QBI, but not real estate professionals as they spend less than 50% of their hours on real esate) mush check it or not. I noticed that my refund immediately disappears if I check it. Passive activities as far as I know don't reduce income from w2 etc.

Line 1aa Clean Vehicle Credit - Commercial Vehicle(s) (Form 8936 Part V)
1. Clen Vehicle Credits - Commercial Vehicle(s) .... 7500
2. Amount form line 1 that is from a passive activity. Check if all passive.

 

[mongo]

With the "4." I meant on form 3800 Line 1aa where turbotax puts $7500 credit is a checkbox "Check if all passive".

This is probably more of a question whether Schedule E landlords (active participants, claiming QBI, but not real estate professionals as they spend less than 50% of their hours on real esate) mush check it or not. I noticed that my refund immediately disappears if I check it. Passive activities as far as I know don't reduce income from w2 etc.

Line 1aa Clean Vehicle Credit - Commercial Vehicle(s) (Form 8936 Part V)
1. Clen Vehicle Credits - Commercial Vehicle(s) .... 7500
2. Amount form line 1 that is from a passive activity. Check if all passive.

I meant I have no idea on that topic

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