RV under $25k = $4k used ev tax credit?

Ask the Hackrs
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1

Sorry if this is remedial but don’t think anyone’s actually executed on this, but in theory, if we end up buying the car, and the RV is under $25k, does that mean we will be eligible for the new $4,000 income tax credit under the new rules?

What if we buy out the lease early, technically we still bought the car at the RV? The other payments aren’t for the car?

2

Think it has a clause that it must be bought from a dealer, so that might not work.

3

Must be purchased from dealer and while those might not apply with leases

  • Not be the original owner

The sale qualifies only if you meet all requirements, and:

  • You buy the vehicle from a dealer
  • For qualified used EVs, the dealer reports required information to you at the time of sale and to the IRS.

A dealer is a person licensed to sell motor vehicles in a state, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government, or any Alaska Native Corporation.

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4

Income limits are also lower for the used EV incentive.
In addition, your modified adjusted gross income (AGI) may not exceed:

  • $150,000 for married filing jointly or a surviving spouse
  • $112,500 for heads of households
  • $75,000 for all other filers
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5

any CPA here who can comment on following:

  • broker who meets definition of dealer, exercise 3rd party buyout of our lease
  • broker / dealer turns around and sell it to us(we were leasee but captive was the original owner) and follow up with IRS

If this possible route to purchase and capture the rebate?

6

A “dealer” is a person or entity who is licensed as such. A broker, which, even if licensed, is a different license than a dealer.

I don’t know the IRS rules specifically. I’m just stating the facts. I can’t imagine they don’t require a dealer, in their definition of a dealer, to have a dealer license.

I agree with having a dealer buy it from the bank and sell it to you. That should work no problem. But good luck getting one to do that for a reasonable price. And would it stay under the 25k limit at that point?

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7

If you buy out the vehicle early, youre not buying it for the rv (unless you did a onepay or something like that).

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8

Quite a few options out there though an early generation leaf even with 30% or 4k back as a credit still isn’t a great deal. Unless you’re always near a charger.

https://www.cars.com/shopping/results/?fuel_slugs[]=electric&fuel_slugs[]=plug_in_hybrid&list_price_max=25000&maximum_distance=all&sort=list_price&zip=02472

Having said that when you filter to 2020 or newer there are quite a few decent options that after credit would be only around 10k.

9

Insightful. Was thinking about helping our nanny lease a lower cost EV, was wondering if there was a way to get the $7,500 worked into lease and then boost a bonus $4k equity at lease end by getting a car where the RV is under $25k, assuming we’d buy it.

Seems like unviable / Way too much hassle, and the sales tax would erase a lot of benefit too, I think. Thanks all!

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