$7,500.00 Federal Tax Credit - Claimed in year ordered or year delivered?

[HX_Guy]

Question for anyone that possibly went through this last year - do you claim the $7,500.00 Federal Tax Credit for the year you ordered the car, or do you have to wait until delivered.

I'm just now starting to look into the Model S and it would be great if I was able to order one now and claim the tax credit for 2016 taxes, but I'm not too familiar at all yet in how the ordering process works and if a VIN is required to claim the tax credit.

The other option potentially would be to buy an already built model, but that timeframe is pretty short at this point and there only appear to be 3 cars available at this point, none of which tick off all the boxes I want.

 

[KyleDay]

It's based on the date you buy the car and take title/possession. Not order date.

 

[KyleDay]

Check out ev-cpo.com. Lots of inventory cars available that are brand new.

 

[HX_Guy]

Wow, thanks! Why do these not show up on Tesla's site?

...off to see if any AP2 cars are available.

 

[HX_Guy]

Ok...looks like there are plently of choices. I assume FSD (Full Self Driving) means it has AP2, correct?

 

[Maximapolak]

Ok...looks like there are plently of choices. I assume FSD (Full Self Driving) means it has AP2, correct?

That means it has EAP and FSD. 2.0 hardware cars are the only ones that can have those options.

 

[ev-now]

Ok...looks like there are plently of choices. I assume FSD (Full Self Driving) means it has AP2, correct?

And likely a Tesla DS can find you even more than are on ev-cpo.com (possibly more than the 'hidden' ones you'll have to subscribe to see).

 

[Half Dollar Bill]

Ok...looks like there are plently of choices. I assume FSD (Full Self Driving) means it has AP2, correct?

Two things:
Here's the CPO site owner - pretty sure he'd be happy to help you. @HankLloydRight

Then, not entirely certain on this, but because they're pre-owned, I believe that means you're not eligible to claim the tax credit, just like you're not eligible for the referral link credit. I hope I'm wrong on that assumption for your benefit. But I also concur that the credit is claimed when the car is put in service when you pick it up, not when you order it. Good luck!

 

[HX_Guy]

The site has many (299 at the moment) Inventory cars that are considered new, most with 50 miles or less, though there are what seem like some demo cars with a few thousand miles on them.

 

[bkp_duke]

It's based on the date you buy the car and take title/possession. Not order date.

Actually, it's claimed in the year PAID. So, if you were to technically pre-pay 100% of the purchase price this year, and take delivery on Jan 1, 2017, then you could claim it for 2016.

Not that anyone is going to pre-pay 100% before delivery . . .

 

[HankLloydRight]

Not that anyone is going to pre-pay 100% before delivery . . .

Say someone is in a position where 2016 is the only year where they have a $7500 or greater tax liability, which won't exist in 2017. It might make sense to 100% prepay in 2016 to claim the credit. You don't even need the VIN until April 15, 2017 when you file.

So in theory, on 12/31/2016 one could order and pay 100% for a car and claim the credit for 2016.

I'm not a tax guy, this is just my opinion.

 

[MorrisonHiker]

In order to legally claim the tax credit, you must place the vehicle in service. The IRS requires that you place the car in service in the year that it is delivered. Therefore, you can't prepay in 2016 for a car that will be delivered in 2017 and claim it on 2016 taxes. You would only legally be able to claim it on 2017 taxes since that's the year it is delivered and actually placed in service.

 

[PinkGasT]

This is the very reason we were told to take delivery on 12/31/16 and will therefore delay our trip for a few hours.

 

[KyleDay]

Correct. You must take delivery of the car and sign the contract for the tax credit.

 

[HankLloydRight]

Ah, right, I forgot about the in-service part.