I have the opportunity to purchase a Tesla Model S that was paid for cash but was never registered or titled. Will I qualify for the Georgia State Credit and Federal Tax Credit? Any help is appreciated. I tried to search but may have not used the right search words; I apologize if a topic is out there already. KEY FACT, again: car was NEVER registered or titled, only has factory miles on it (50 miles).
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Federal Tax Credit on Non-Registered/Titled Model S
- Thread starter blackoutRF
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In my opinion yes, only because you will be the first on the original title. You are the first purchaser for personal use, and will have an original issue title and if you have a bill of sale that shows NEW all these would point to that. If the other person or entity filed for the credit, they would be doing if fraudulently as it is only available to the original purchasers for personal use. You can look up the federal form on the IRS.gov website. Also there is a credit up to $1000 for installation of a charging station at your house. Another form you can find on the IRS.gov website.
If the first purchaser did apply for the credit you are not able. If you get audited and cannot show that you were the person on the original purchase contract, you will be denied.
The tax credit is applied for when you file your income tax return. It is not applied for when you get the car, it is a credit taken on your tax return filing. You can take the credit, if you were audited you would then have to show that you were the original purchaser for personal use which means you registered the car. The other guy would have the problem, not you, because he could not show that he registered the car. So In my opinion the other guy has the problem if he takes the credit not you. In the end you probably should consult your CPA or tax preparer, but tell him that the car was never registered and you are the original first title owner of the car, it makes a big difference.
If you have questions about tax law, I would suggest consulting a tax professional. Anonymous advice on the internet may not be sufficient when 4-figure sums are at stake.
That said, you can consult the IRS requirements and make up your own mind. From Internal Revenue Bulletin 2009-48:
That said, you can consult the IRS requirements and make up your own mind. From Internal Revenue Bulletin 2009-48:
If you are the first person to put the vehicle in service, you can claim the credit. The IRS requires the VIN and if anyone else tries to claim it, you may both be pulled up for audit. If the car has never been titled, then you should have the Manufacturer's Certificate/Statement of Origin, and if you do, then you should be good to go.
Contact your tax preparer (preferrably an Enrolled Agent before the IRS) for their opinion, as bradc states -- a bit of a pitch for my mother's profession.
Contact your tax preparer (preferrably an Enrolled Agent before the IRS) for their opinion, as bradc states -- a bit of a pitch for my mother's profession.
