Hi there,
I’m looking to lease a 2021 Volvo XC40 Recharge; the dealers are not listing the $7500 rebate as a discount off the price, and they said that I have to claim the rebate through my tax return as if I was purchasing. I thought with leases the title owner gets the rebate, so I wouldn’t be able to get it and Volvo would get it?
Just checking whether the dealers are trying to pull a fast one on me.
Alexei
Leases never get the tax credit. Some banks pass on an equivalent incentive amount as lease cash. The dealer is wrong about claiming it and they know better.
Volvo is keeping the $7500 and the dealer is telling you how to commit IRS fraud.
It specifically says in the IRS that lease consumers cannot claim it…
Can I claim the credit for a leased vehicle?
If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.
No, Lesha, you do not get the tax credit. Sorry.
You are the consumer, the leasing company is the bank. The leasing company (in this case Volvo) is keeping the the credit.
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