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Tax Credit after selling car

Discussion in 'Prime Main Forum (2017-2022)' started by Daniel L, Sep 21, 2021.

  1. Daniel L

    Daniel L Member

    Joined:
    Feb 18, 2011
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    United States
    Vehicle:
    Other Non-Hybrid
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    N/A
    So, like a fellow member here aptly described, the Prime EV mode is a gateway drug into the world of EV cars. I originally purchased the Prime as a daily commuter car to accompany a weekend sports car but I like the EV mode so much that I ended up ordering a performance model Tesla.

    I plan on selling the Prime once the title comes in but am wondering if I can still claim the tax credit after selling the car. If necessary I can just hold on to the prime until I file next year but would rather not have an additional car parked in the driveway.
     
    #1 Daniel L, Sep 21, 2021
  2. burrito

    burrito Active Member

    Joined:
    Jul 25, 2021
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    Location:
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    Vehicle:
    2015 Prius
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    Two
    I don't think the IRS cares who claims the credit, as long as only 1 taxpayer claims it. If you bought the car yesterday and sold it tomorrow, you should be eligible to claim the credit, but the entity you sold it to couldn't.

    And if you wanted to hang onto the car to be sure, you wouldn't have to keep it until you filed next year, just until January 1st.
     
    #2 burrito, Sep 22, 2021
  3. Gokhan

    Gokhan Senior Member

    Joined:
    Oct 5, 2008
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    Paramount CA
    Vehicle:
    2021 Prius Prime
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    Limited
    There has been a lot of fraud regarding this, costing IRS tens of millions of dollars. When you file for this credit, it delays your refund by three months (I've had two Prius Primes), which means IRS is somehow checking the VIN against the registration records. If the VIN doesn't show up registered to your name, you could be audited and asked to provide proof of purchase, and they may deny the tax credit because you sold the car after a very short period of time.
     
    #3 Gokhan, Sep 22, 2021
    burrito likes this.
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