Lots of unknowns regarding the 2023+ EV Tax Credit. Supposedly up to $4k on a used vehicle, anyone know how this is determined?
Let’s say I leased a Chevy Bolt for almost nothing in 2021, in that case, no federal rebate was applied, GM applied a boatload of incentives, but that has nothing to do with the government. If I decide to buy the vehicle out today, I get nothing back. What if I wait until Jan 1, 2023, ownership would be shifting from GM Financial to me, so it’s a used vehicle purchase and should be rebate eligible for up to $4k provided you don’t exceed the income requirements.
Similar scenario for everyone who’s leasing a 4XE and hasn’t flipped theirs. Chrysler Financial claimed the $7500 and passed it on to you, if you bought the vehicle out in 2023, you could qualify for the $4k or maybe less because it’s a hybrid, because technically you’re buying a used vehicle.
Not sure how this will work, but if you’re in an existing lease of a qualifying vehicle, it might make sense to see exactly what the rules look like since we could benefit from buying out in Jan vs. now.
The model year must be “at least 2 years earlier than the calendar year in which the taxpayer acquires” it, and
The cost is under $25,000
Add to it that you must purchase it from a licensed dealer for personal use. Lease buyouts can be facilitated through a dealer but you are not inherently purchasing it from a dealer.
But if you return your lease to a dealer and then purchase it from them (at whatever price they sell to you), I suppose you could potentially qualify?
You missed the ither base requirement that specifically states that the vehicle can not have been first put into service by the same person as the one claiming the used credit.
Its written in such a way that even the “well technically the bank took the tax credit on a lease” doesnt get you out of it.
Seems like you’re screwed all ways on a lease? The captive banks won’t qualify because they likely exceed income caps, and the individual won’t qualify when trying to buy out the lease.
BOLT EV cheap lease wherein fed rebate was applied to leased price. Now time to return leased Bolt. But if I buy her, another $4K in federal rebate as new owner. But has to be purchased through licensed dealer. Anyone play this game and how did they maximize the savings?
Perhaps you are not reading the law. Already talked to stealership but not the top dog. He said they often do all the paperwork for a lease buyout and can then title in the spouse’s name (new owner) as a sale from the dealership. $4000 eligible. All legal. Stealership wants $$$ to do the paperwork as it looks like it must happen at a Chevy dealer. Need insight from someone who has accomplished this.
I’m sure this will end up being a fascinating legal case some day (not necessarily you, but someone doing this).
If property is communal in a marriage, do husband and wife both satisfy the irs definition of having put the vehicle into service, even if only one is on the original contract.
I think everyone knows I got no love for the entitlement enforcement service, but you definitely gotta tread lightly when it comes to the same folks Capone couldn’t buy off.
I wouldn’t even post about the OP subject matter anywhere it can be read by prying eyes.
Yes, much to gain from me as I am just like Capone, with same income. Get real. Leasing company got the $7500 first time around, not me. Many companies don’t pass along this “savings” now. So just waiting for my turn for the next IRS incentive. If I buy a new EV, I get $7500. So keep the old, pocket $4000. Every EV is now eligible for the douple dip. I thought you guys here are all Hackers. Cowboy up. All that matters is the Benjamins. If I wanted a real deal, I would be on key_fob_hackers, boost a Ferrari, and let her sit in the garage for 4 years until the statute of limitations runs out.
I think what is being said here is, this is a grey area with a significant downside if you are not correct. In the very least, it may not be ideal to discuss this online until you are sure.
Per tax attorney, all is above board. Looking to see who else has accomplished it and what the dealership wanted to push through the paper or if there’s another way with an indy dealership. People here will beat a dealership for $100, squeeze a broker, but when it comes to a real savings with the feds, you tuck and run? Even you, hacker emeritus? It’s all legal as follows the law.
Many ways to orchestrate the deal, but a dealer must be involved. Not asking for opinions if you read the post - I am seeking others who accomplished the goal and who they involved to effect the transfer. That’s the request for advice.
