I purchased a Tesla Model X through my S Corporation in Boston MA in Nov 2018. My application for the $1000 EV rebate was denied because the rebate office told me the rebate is for personal purchase only, but not for business purchase. Now I am wondering if I am eligible for Federal $7500 tax credit? If yea, should I file the IRS Form 8936 in my S Corporation tax return or in my personal tax return? Thanks.
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$7500 Federal Tax Credit
- Thread starter markboston
- Start date
If you purchased the X under your business, you should be looking into a section 179 depriciation rather than the $7500 tax credit. That will allow you to fully depriciate the vehicle and use that towards your tax corporate burden. Of course, you will eant to have an accountant or tax professional verify everything.
I am not a CPA. I slept at a Holiday Inn last night.
Section 179 for business is where it's at. Take the total amount used to acquire the vehicle including taxes and registration etc. (do not add interest to this amount if you financed. Interest goes into a different section), subtract the $7500 federal rebate you're getting back. Do not subtract the state rebate because the state rebate counts as taxable income. Do your section 179. BOOM!
The $7500 federal rebate you will claim in your personal tax return. You have to state the % used for business and % used for personal. The % used for personal (say 3% which is $225) you get to claim right away. The % used for business goes to a different worksheet (say 97% which is $7275) becoming a General Business Credit (which was subject to Alternative Minimum Tax but is fully allowed now due to Trump tax cuts) which then flows to your personal bottom line as well.
Section 179 for business is where it's at. Take the total amount used to acquire the vehicle including taxes and registration etc. (do not add interest to this amount if you financed. Interest goes into a different section), subtract the $7500 federal rebate you're getting back. Do not subtract the state rebate because the state rebate counts as taxable income. Do your section 179. BOOM!
The $7500 federal rebate you will claim in your personal tax return. You have to state the % used for business and % used for personal. The % used for personal (say 3% which is $225) you get to claim right away. The % used for business goes to a different worksheet (say 97% which is $7275) becoming a General Business Credit (which was subject to Alternative Minimum Tax but is fully allowed now due to Trump tax cuts) which then flows to your personal bottom line as well.
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