Federal $4502 tax credit - what is consider resale?

Discussion in 'Prime Main Forum (2017-Current)' started by citiprius, May 11, 2018.

  1. citiprius

    citiprius Active Member

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    On the IRS site, under the Plug-In Electric Drive Vehicle Credit (IRC 30D), some of the requirements are:
    1. The vehicle is placed in service by the taxpayer in a taxable year beginning after December 31, 2009, and is acquired by the taxpayer after December 31, 2009;
    2. The original use of the vehicle commences with the taxpayer;
    3. The vehicle is acquired for use or lease by the taxpayer, and not for resale; and
    4. The vehicle is used predominantly in the United States.
    What is considered resale? If I sell it after use it for a few months, is it a resale? Any definite rules / guidelines?
     
  2. Salamander_King

    Salamander_King Senior Member

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    Don't have an answer, but interesting question.
     
  3. JimN

    JimN Let the games begin!

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    "If I sell it after use it for a few months, is it a resale?" No. You are selling a used car.

    You would have to buy the car, not title it, then sell it as a new car.

    #3 is what prevents the dealer from claiming the tax credit when buying the car from Toyota.
     
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  4. Salamander_King

    Salamander_King Senior Member

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    Great!. Then if I trade-in my Prime Premium (purchased in 2017 and already tax credit of $4502 collected), and buy a new Prime Plus (2017 model now with $4500 cash back) in year 2018, can I claim another $4502 credit for the new purchase on 2018 income tax return (provided of course the law does not change for 2018 tax yea)?
     
  5. Trollbait

    Trollbait It's a D&D thing

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    Isn't there a minimum amount of time that you need to keep the car, or am I thinking of past hybrid tax incentives?
     
  6. 2015BlizzardPriusFour

    2015BlizzardPriusFour Active Member

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    I believe 30 months of ownership required or you have to pay back the IRS.


    iPad ?
     
  7. wjtracy

    wjtracy Senior Member

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    I do not recall any time limit for the Federal Tax Credit. First owner takes the credit.
     
  8. VVTiBob

    VVTiBob Member

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    There’s no time limit on ownership for the Federal Tax Credit, whatever State credit you my get, rules vary. The Federal rule is the vehicle credit cannot be claimed if the vehicle IS PURCHASED for RESALE. That is, car dealers cannot claim the credit. Additionally, how could the government prove your intent when you bought the car? Unless of course you did it multiple times and even then it’s circumstantial. With all that said, do you really to get on the wrong side of the IRS?
     
  9. Since2002

    Since2002 Senior Lurker

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    I'm guessing that you want to switch from Premium to Plus because of the MFD?
     
  10. Salamander_King

    Salamander_King Senior Member

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    Yap, I don't like 11.6 inch touch screen control and softex seat. I will miss 3 way sks though.
     
  11. CharlesH

    CharlesH CA HOV Decal #5 on former PiP

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    I think that the determining factor is who first who first registered a title for it with the state; they get the federal tax credit. For example, for leases, this is the leasing company.
     
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