I’m not sure where you’re referring to
Q1 says original owner
Q2 says original user
Q3 says original user
Q6 Defines original use which is a different thing.
Gotcha. Too many different lines in there.
I don’t think original owner is up for much argument. The lessee never owns the vehicle, so they can’t be the original owner.
Topic A, Q8 seems to clearly define both “original use” and “original user”, and specifically states that applies to the lessor, not the lessee.
One would need to argue that the definition established in A.Q8 is different than the definitions used in Topic D. There doesn’t seem to be any reason to even point to a different definition being used.
My lease is up in 6 months, lets hope it gets straightened out in @Nklem interpretation. I really didn’t want to change it to my spouse just to circumvent this rule.
I do agree the IRS appears to have different opinions for “original use”. but the note above " Original use occurs the first time an individual or business places a vehicle in service for personal or business purposes". I as an individual, did not do this, (the car was titled to the leasing bank (as it’s true Owners)), my Leasing company did this and more than likely received the $7500 federal incentive.
I am clearly the lessee. To me, I always saw this as they (the leasing company) are the ones putting it into service as a Leased Vehicle, to a “lessee” for it’s “original use”. The statement under the “new terms” , seems to solidify that opinion, but it’s an opinion only.
Somewhere I did read (there have been so many articles recently) it is truly designated as who the Vehicle is originally “Titled” to, that determines this, and in a Lease case, that is the Leasing Company or Lessor.
Q6. What is “original use” of a previously owned clean vehicle?
A6. Original use occurs the first time an individual or business places a vehicle in service for personal or business purposes. Again, my humble Opinion only, this is the leasing company (A business) for “Business purposes”, to make money from a Lessee. If my name was on the title, I would have a completely different opinion.
And …
Q1. What is the previously-owned clean vehicles credit under § 25E? (added December 29, 2022)
A1. … To claim the credit, a qualified buyer must meet certain income requirements and it must be the vehicle’s first qualified sale to a qualified buyer since August 16, 2022, other than to the original owner."
I am not counting my chickens yet, but to me it looks very promising. Of course this is the Government and the IRS. It will be very interesting as the year goes on and early next year to see the clarifications. I am happy either way as my buyout was awesome, but an additional tax credit would be very nice…
In my opinion only, if you file joint taxes and live together, that “may” not work. Believe me, I thought about that as well, many times…lol. Also, your lease contracts typically say the buyer MUST be the same as the LESSEE. But who knows. Fingers crossed!
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The actual bill or true US tax code , says “original use”…
This part is easily circumvented by the ‘Lets sell the car to the dealer and then buy it from them’. That one isn’t even in my radar of ‘issues’. The whole joint taxes is a slight concern.
Seems to say here that it depends on original owner. No mention of original user.
The irs interpretation of that doesnt. The actual law is s bit different:
" (1) Previously-owned clean vehicle
The term “previously-owned clean vehicle” means, with respect to a taxpayer, a motor vehicle-
(A) the model year of which is at least 2 years earlier than the calendar year in which the taxpayer acquires such vehicle,
(B) the original use of which commences with a person other than the taxpayer"
Hmm, so seems risky then to rely on this.
Just to bump an old thread,
The IRS on 10/6 added some new info, which does suck for people trying to get the 4k and selling the car, (it always said resales not allowed but it goes indepth) and really affects flippers of those few cars that get the Fed rebate.
Q7 specifically says Person who was original User. So Wife must sell to someone else, maybe husband.
FAQ 4 link is dead, wish it worked. But it does says a Person who was original user, not corporation.
Q12 now defines resale as 30 days for Used and NEW (new is in a different section actually). So an EV flipper who doesn’t keep their cars 30 days does not qualify for the FED rebate. This will most likely affect flippers in 2024 as the rebate is instant.
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What was the verdict on this? Was anyone able to successfully do this last year with their lease buyout? Considering doing it with mine.
I tried on my Kia and the dealership said they would charge me a Recon / CPO fee of $3000…sigh
Instead of lease buyout, surrender it and try to buy it (using wife’s name) when it hit the used lot. With the current ev market, I doubt it will sell fast or will sell more than the buyout.