Inquiry about the Used EV Tax Credit

[Theodore]

I recently purchased a new Tesla and in the process, I claimed the $7500 tax credit.

My concern is, could I sell the car to my husband via Keysavvy for $13,400 so he can claim the $4000 used tax credit?

[Hudson]

For your husband to claim the used EV Tax Credit, the one and most important condition is that it has to be from a dealer.

In addition, the car has to be 2 years old.

Be careful because if you go ahead with your plan, you may be doing some tax fraud.

[Barbara1]

As my fellow forum member, @Hudson has put it across, that would be actually tax fraud.

Do you want to risk cheating the system just to save a few dollars? I hope not because there are some serious consequences which you won’t like either.

[Charlotte]

I don’t understand why most guys are constantly trying to play the system when it comes to EV purchases.

Maybe one day they will learn a lesson.

[Emma]

@Theodore

I recently purchased a new Tesla and in the process, I claimed the $7500 tax credit.

My concern is, could I sell the car to my husband via Keysavvy for $13,400 so he can claim the $4000 used tax credit?

Although I don’t know the law governing EV purchases very well, I think if you file separately that might be true but if I were you, I would be sure before I risked going to prison for just a $4K tax credit.

[Kathy]

What I know is that the used car must be two model years old.

Also, it must have a sale price of 25K or less.

Either way, you can do more research on the same to be sure to avoid meeting with the local authorities on the bad side of the law.

[Washington]

@Theodore

I recently purchased a new Tesla and in the process, I claimed the $7500 tax credit.

My concern is, could I sell the car to my husband via Keysavvy for $13,400 so he can claim the $4000 used tax credit?

I believe that you would need to wait at least 2 years for it to be eligible for a used rebate. And to be on the safer side, you need to file individually rather than jointly.

[Johnston]

@Theodore

I recently purchased a new Tesla and in the process, I claimed the $7500 tax credit.

My concern is, could I sell the car to my husband via Keysavvy for $13,400 so he can claim the $4000 used tax credit?

This can be applicable in two years after buying the EV as long as you sell it for $25,000 and use an intermediary dealer.

Of course, as the fellows have already said, the car has to be 2 model years old to qualify.

In addition, the income limits for the used credit must be lower than for the new credit.

In the condition that you are just upgrading and selling the car in two years, and you have no intent to commit fraud, you in this case should be able to do it in two years.

[Evans_Smith]

@Theodore

I recently purchased a new Tesla and in the process, I claimed the $7500 tax credit.

My concern is, could I sell the car to my husband via Keysavvy for $13,400 so he can claim the $4000 used tax credit?

Selling the car to your husband might not qualify for the credit because It has no met the conditions laid across for it to happen. The conditions include:

• The car must be purchased from a licensed dealer, not a private sale.
• The buyer must not be the original owner, and since you just purchased it new, this might disqualify the transaction.

I think it is a good idea to consult with a tax professional to ensure you meet all the requirements and to explore any other potential options.

[Jane]

@Theodore

I recently purchased a new Tesla and in the process, I claimed the $7500 tax credit.

My concern is, could I sell the car to my husband via Keysavvy for $13,400 so he can claim the $4000 used tax credit?

Theoretically, it is possible, however, the EV needs to have been in service for a certain amount of time to count as used, so for you to be on the safe side, you would have to wait a couple of years to pull it.

If you are filing jointly it’s a good way to attract an audit . Because the IRS is a bit lazy it is unlikely anyone would look hard enough at your taxes to notice.