Federal EV Tax Credit Question

Discussion in 'Prime Main Forum (2017-Current)' started by CBR1000RR, Jan 13, 2019.

  1. CBR1000RR

    CBR1000RR New Member

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    Hi all - new to the forums but not the Prius family.

    My Question: I purchased a 2018 Prius Prime in August 2018. My employer is in a bit of a situation which in turn has put me in a bit of a situation (i.e massive pay cut etc). Given that I do not plan to change jobs my income will be restricted for the foreseeable future and I'm forced to make a few tough decisions. One is to sell the Prius Prime. Let's assume I qualify to earn the full $4,502 federal tax credit. If I were to sell my Prius Prime in the next few weeks and then file my tax return would I still still be able to claim the federal tax credit on my tax return for 2018? Or would I have to technically still own the car until I file my taxes? Based on my research it seems like as long as I owned the vehicle in 2018 I can claim the federal tax credit even if I were to sell the vehicle anytime in 2019. I'm not a tax expert and the few friends I've asked all seem to agree with me but figure I ask the fine folks of the internet to see if anyone has experience with this.

    I couldn't find much information on the IRS or fueleconomy.gov website but if anyone can point me in the right direction I'd appreciate it.
     
  2. CBR1000RR

    CBR1000RR New Member

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    I wasn't able to edit my initial post so apologies in advance for the second post. When I was doing research the only thing I was able to find is: "The vehicles must be acquired for use or lease and not for resale". I'm certain this doesn't apply to me as I've been using this as my daily driver since purchase (with the intention to keep it long term hence Toyota) and put somewhere around 4,000 miles and can prove to the IRS the financial hardship regarding my employment.


    irs[dot]gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
     
  3. schja01

    schja01 One of very few in Chicagoland

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    You purchased (not leased) the car in 2018. Claim the credit.
     
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  4. jmarkd7

    jmarkd7 Member

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    In your situation I would claim the credit. Even without a good reason like you have, if the law says purchased in 2018 you’re good. Not sure how they’d prove “intended for resale” unless you put an ad up right after buying it.
     
  5. CBR1000RR

    CBR1000RR New Member

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    Got it thanks folks. Immediately after posting this question I spent about 2 hours looking over the Tesla forums to see if anyone has had a similar situation and looks like i'm in the clear. The whole situation sucks but at least this will help ease the sting a little. Going to miss the Prime once it's out of my hands.
     
  6. schja01

    schja01 One of very few in Chicagoland

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  7. wjtracy

    wjtracy Senior Member

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    According to TurboTax the FORM 8936 is not yet available for 2018. But assuming same guidance as 2017, I agree with the above posters that you should assume you qualify, espeically if you held the car some months.

    State situation could be different. if Ca. keep in mind they boost plug-in benefits to lower incomes, but I think you do need to own the car for some years

    I recall back in the days West Virginia was giving $7500 credit for PiP and Fed Credit was $2500, so one guy got a 2012 PiP for like $15k net. A few years later he was selling PiP here for $21k.
     
  8. juhjuhjuhjames

    juhjuhjuhjames Junior Member

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    Where are you seeing this? I saw something along the lines of the form not being available, but it was for 2017 returns, saying the form would be available March 2017
     
  9. ILuvMyPriusToo

    ILuvMyPriusToo Senior Member

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  10. wjtracy

    wjtracy Senior Member

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    I am just saying that I have already purchased TurboTax 2018, so to help answer the OP's question I decided to make a hypothethical plug-in vehcile purchase. Turbo Tax gives a message that the 2018 plug-in tax forms are not yet ready. It always mystifies me that there is any delay, because it is the same 8936 form every year. But that would be the best way to see if there are any unexpected rule changes.

    Now let me check the acceleration on this hypotheical Prime...nice!
     
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  11. juhjuhjuhjames

    juhjuhjuhjames Junior Member

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    Sorry, had no idea there was a different form for the new year!
     
  12. ILuvMyPriusToo

    ILuvMyPriusToo Senior Member

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    Usually the difference is the year at the top right corner of the form! :cool: :LOL::LOL::LOL::LOL::LOL:

    (Although this year there were enough changes in the law and forms that it is anyone's guess! I bet even the IRS hasn't figured it out yet :eek:)
     
  13. KG350

    KG350 Junior Member

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    I got a similar question, what If I decided to trade my Prime in to a CarMax and buy say a Nissan Leaf.
    I got the car in 2018, so I'll be claiming the tax credit this year. If I do this, would there be a penalty on my end? I've been trying to find some info but no luck.

    With the Leaf, I plan to claim the $7,500 in 2020.

    I live in CA, I believe the $1,500 state credit, I will have to give a certain amount of back depending on how many months of ownership.

    More so concerned if the tax credit is similar to the state credit.

    Thanks!
     
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  14. wjtracy

    wjtracy Senior Member

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    We are waiting to see if the 2018 forms have any new guidance, but up until now there has not been a holding time limit we are aware of (re: Federal credit).
     
  15. KG350

    KG350 Junior Member

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    ah ok. It'll be great if there wasn't. But wouldn't make the jump to another EV with longer range. Sadly the 2019 prime is exactly the same with zero improvements. :(
     
  16. juhjuhjuhjames

    juhjuhjuhjames Junior Member

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    #16 juhjuhjuhjames, Jan 16, 2019
    Last edited: Jan 16, 2019
  17. wjtracy

    wjtracy Senior Member

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    I am thinking it is not yet final,.but they know pretty much the draft form is not changing. I see no changes this year that would require holding period.
     
  18. Mardar

    Mardar Junior Member

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    I purchased a Prime in 2018 and went to my accountant today to get my taxes done. He informed me that I would not be able to receive the tax credit yet because at this point, Congress has not yet voted on whether or not to renew it. Until they do, no tax credit. If they do renew it, he said we can then apply to have the amount refunded.
     
  19. bamike

    bamike Junior Member

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    Your accountant is wrong. Fire him. I already got my full credit and I filed last month.
     
  20. Marine Ray

    Marine Ray Senior Member

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    When did you purchase your Prime - last year or this year? If last year you should be OK, if this this then you have to wait until you file your taxes next year.
     
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