Can I keep tax Credit on 2023 BOLT EUV I bought earlier this year if I resell it to get new Tesla Model Y?

[lencap]

Greetings!

Sorry for a tax question post that may seem redundant with other posts, but I've gotten conflicting information from Tesla, and I want to know the facts before deciding.

I took delivery of a new Chevrolet Bolt EUV on January 31, 2023. Dealer confirmed that it qualified for the full tax credit. I bought the car instead of a Tesla because of the large price difference at the time. Now, with the recent price cuts, I find the Model Y a far better match for my intended use, and would like to replace the EUV with a Model Y.

The issue is the tax credit. Federal guidelines say you can't claim the credit if you resell the car, but neither Tesla or two lawyers I contacted can tell me what that means. I bought the EUV intending to keep it until my Cybertruck arrives - I've been on the wait list since it was announced. However, Tesla's price cuts on the Model Y make it too attractive to ignore. I'd like to order and take delivery of a Model Y ASAP, but only if I can get BOTH tax credits. If I lose the initial credit reselling it makes no sense since it would be far below my pre tax credit cost.

Does anyone have a definitive answer to the question: "If I buy a Model Y and sell my recently purchased EUV, will I be able to get BOTH tax credits when I file my 2023 taxes?"

I appreciate the help. Thank you.

 

[uscbucsfan]

What's unclear about, "Federal guidelines say you can't claim the credit if you resell the car"?

 

[Sophias_dad]

https://www.govinfo.gov/content/pkg/CFR-2011-title26-vol1/pdf/CFR-2011-title26-vol1-sec1-30-1.pdf makes it pretty clear that's a hard NO, but maybe they somehow didn't make that apply to the 'new' credit.

 

[HankLloydRight]

Federal guidelines say you can't claim the credit if you resell the car,

What federal guidelines? There's no way the government can force you to keep the car forever once you've taken the EV credit. And the credit can only be taken once per new car. Show me where it actually says you can't resell the car as a private individual. I think the confusion comes from the fact that a dealer in the business of selling cars can't take the tax credit if a dealer is going to turn around and flip/resell the car.

https://www.govinfo.gov/content/pkg/CFR-2011-title26-vol1/pdf/CFR-2011-title26-vol1-sec1-30-1.pdf makes it pretty clear that's a hard NO, but maybe they somehow didn't make that apply to the 'new' credit.

I read that, and it looks like you can sell the car and claim two credits in the same year.

Unless you knowingly sell the car to someone who is going to convert it to a non-EV, then it does qualify as a re-capture event. Otherwise, you're in the clear.

edit to add: You can only take both tax credits assuming you have at least $15k in tax liability for the year. If you don't, then you're capped at how much credit you can take.

 

[patrick40363]

Greetings!

Sorry for a tax question post that may seem redundant with other posts, but I've gotten conflicting information from Tesla, and I want to know the facts before deciding.

I took delivery of a new Chevrolet Bolt EUV on January 31, 2023. Dealer confirmed that it qualified for the full tax credit. I bought the car instead of a Tesla because of the large price difference at the time. Now, with the recent price cuts, I find the Model Y a far better match for my intended use, and would like to replace the EUV with a Model Y.

The issue is the tax credit. Federal guidelines say you can't claim the credit if you resell the car, but neither Tesla or two lawyers I contacted can tell me what that means. I bought the EUV intending to keep it until my Cybertruck arrives - I've been on the wait list since it was announced. However, Tesla's price cuts on the Model Y make it too attractive to ignore. I'd like to order and take delivery of a Model Y ASAP, but only if I can get BOTH tax credits. If I lose the initial credit reselling it makes no sense since it would be far below my pre tax credit cost.

Does anyone have a definitive answer to the question: "If I buy a Model Y and sell my recently purchased EUV, will I be able to get BOTH tax credits when I file my 2023 taxes?"

I appreciate the help. Thank you.

Yes.

 

[DP26]

If your state has a credit or rebate, they may have a hold period and they can access dmv for compliance. For fed, what you describe, I would take two credits. If the old car ends up at a dealer, the new buyer may get their own credit!

 

[lencap]

Thanks again! I can take advantage of the dual tax credits since my IRA RMD will push my taxes up. My state has no EV credit. Thanks for the citation about the EV recapture. It does seem as if I can take two tax credits, but I've never been very good at reading/interpreting "legalize". It there's a way to make something complicated the tax and legal fields will find it.

 

[Sophias_dad]

What federal guidelines? There's no way the government can force you to keep the car forever once you've taken the EV credit. And the credit can only be taken once per new car. Show me where it actually says you can't resell the car as a private individual. I think the confusion comes from the fact that a dealer in the business of selling cars can't take the tax credit if a dealer is going to turn around and flip/resell the car.




I read that, and it looks like you can sell the car and claim two credits in the same year.

Unless you knowingly sell the car to someone who is going to convert it to a non-EV, then it does qualify as a re-capture event. Otherwise, you're in the clear.

View attachment 930006


edit to add: You can only take both tax credits assuming you have at least $15k in tax liability for the year. If you don't, then you're capped at how much credit you can take.

I'll agree with that. You can indeed take both tax credits.