Has anyone looked into or do any dealers here have thoughts on EV credits w the inflation reduction act? IE, when I leased my EV, $7500 was credited off the cap cost because of the credit. The lease is up Feb 2023 when IRA used EV credit kicks in…my purchase price is “locked” at $19K, making this now “used” vehicle purchase eligible for the $24K and under credit. So will dealers be applying the $4K credit on these lease buy outs, as I believe IRA requires it to be a dealer purchase and the credit applied at the dealer? Very confusing that this is even possible unless I’m mistaken and a lease buyout isn’t actually considered a used car purchase for the purpose of this program.
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Most likely you will need the lease buyout to be processed by the dealer, and they may charge fees for the buyout process…
That settles it I suppose!
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Could OP’s wife buy it? It would be a different person than original owner.
Could fly, it depends on what the OEM allows.
Eventually there will be a flow chart and an IRS notice, but the way I read this: husband would have to sell the car to the dealer who would have to sell it to the wife, and presumably they would have to file separately and not jointly.
To me, to a clearly reads that you’re not eligible for the tax credit if a private party sells it to another private party. You would have to dig into the reference as to whether an individual with a dealers license is eligible or if it has to actually transact through a dealership.
To add on - In the long shot that it worked, married filing separate is almost never beneficial to the taxpayers (aka what you lost would not overcome the potential gain). It would not be worth the risk to me. There is a “substance over form” meaning if your using loopholes to go around the intent of the law, in an audit it will be reversed.
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