Federal Tax credit...on preowned

[evalst2018]

Is there a governmental website that states if a $7500 fed credit has been claimed on a vehicle. I’m guessing 99% of the people file for the credit there is still a chance someone didn’t

If you file for the credit on a used vehicle how does the govt check if they have granted the credit already?

 

[SaveOurPlanet]

Not sure if it has to be claimed the same tax year when car was deployed but you have to provide the VIN for the car on the 8936, you can always hope IRS does not keep track of that and try your luck.

 

[evalst2018]

someone posted they did just that a few years ago...

There should be some system to look this up

 

[ewoodrick]

If you file for a vehicle that you didn't purchase as new, it's called illegal. You can probably assume that the IRS is tracking VINs. And AFAIK, you have to file for the year purchased.

 

[ItsNotAboutTheMoney]

Is there a governmental website that states if a $7500 fed credit has been claimed on a vehicle. I’m guessing 99% of the people file for the credit there is still a chance someone didn’t

If you file for the credit on a used vehicle how does the govt check if they have granted the credit already?

Don't know how they do it.

But it doesn't matter whether anyone filed for it. What matters is whether you are the first owner of the vehicle.

They should be able to query NMVTIS to verify the claim and then hammer you hard for the tax fraud.

National Motor Vehicle Title Information System: Understanding an NMVTIS Vehicle History Report

 

[OTARon]

the tax rebate is for NEW EV not pre owned, I bought a 2015 Fiat 500e in 2016 for under 8k and there is no federal tax rebate on used / preowned EV's.

 

[cwerdna]

the tax rebate is for NEW EV not pre owned, I bought a 2015 Fiat 500e in 2016 for under 8k and there is no federal tax rebate on used / preowned EV's.

It's also not a rebate. It's a tax credit.

 

[Maximapolak]

Not sure if it has to be claimed the same tax year when car was deployed but you have to provide the VIN for the car on the 8936, you can always hope IRS does not keep track of that and try your luck.

And go to prison for tax fraud. Sure.

 

[DCEV]

Is there a governmental website that states if a $7500 fed credit has been claimed on a vehicle. I’m guessing 99% of the people file for the credit there is still a chance someone didn’t

If you file for the credit on a used vehicle how does the govt check if they have granted the credit already?

Yeah this would be no different than you claiming a tax deduction that isn't legal. Sure you can file such a tax return but the credit clearly states it is for NEW cars only. So if you are audited, you are screwed, and if this deduction raises a red flag and compels the IRS to audit you, then you are screwed. Either way the best course of action is to follow the law with regards to the tax credit:

From the IRS Website:
Instructions for Form 8936 (2018) | Internal Revenue Service

Qualified Plug-in Electric Drive Motor Vehicle
This is a new vehicle with at least four wheels that:

• Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and
  
  
• Has a gross vehicle weight of less than 14,000 pounds.
  

 

[jorobsand]

And AFAIK, you have to file for the year purchased.

Slight clarification. You file for the year the vehicle was placed "in service", not necessarily purchased.

 

[whitex]

Like @ewoodrick said, it's tax evasion. No different than if you went through parking lots collecting VIN's and claim tax credits on all of them. Claiming a new car tax credit for a used car is no different than claiming it on someone else's car, scrapyard VIN, or a made up valid VIN - all are simply illegal. Like with any other crimes, some do get away with them, but it doesn't make it legal.

 

[Voyager2]

Hypothetically what if the vehicle was leased out by Tesla, and then returned to Tesla after the lease period was up. Then Tesla puts it up for sale as used. It was never "sold" to anyone yet, until someone buys this "used" vehicle. In this case, the purchaser could be considered the "first owner". Does the buyer of this "used" car qualify for the federal tax credit?

Another situation in which the car might (?) qualify for the tax credit: what if the car was a service center loaner or demo vehicle that was never sold before?

 

[trm2]

Hypothetically what if the vehicle was leased out by Tesla, and then returned to Tesla after the lease period was up. Then Tesla puts it up for sale as used. It was never "sold" to anyone yet, until someone buys this "used" vehicle. In this case, the purchaser could be considered the "first owner". Does the buyer of this "used" car qualify for the federal tax credit

No. The leasing company buys the car from Tesla and gets the credit.

 

[Voyager2]

No. The leasing company buys the car from Tesla and gets the credit.

What I meant is that Tesla IS the leasing company. I believe that some of the used cars that Tesla sells on the tesla.com website are actually lease returns that Tesla originally leased out, so they fall into the category of never been sold before, even though they are "used", not current year models, and have miles on their odometer.

 

[ucmndd]

What I meant is that Tesla IS the leasing company. I believe that some of the used cars that Tesla sells on the tesla.com website are actually lease returns that Tesla originally leased out, so they fall into the category of never been sold before, even though they are "used", not current year models, and have miles on their odometer.

No. There is no way to massage this into the answer you’re looking for.

For starters Tesla does not lease their own cars. To finish, even if they did the scheme you suggest above does not make the car “never been sold”. Tesla would have to sell and title the car to themselves (or their leasing subsidiary) to put it on the road. You don’t lease out your inventory.

 

[Voyager2]

No. There is no way to massage this into the answer you’re looking for.

For starters Tesla does not lease their own cars. To finish, even if they did the scheme you suggest above does not make the car “never been sold”. Tesla would have to sell and title the car to themselves (or their leasing subsidiary) to put it on the road. You don’t lease out your inventory.

I found this page about Tesla Leasing:

Tesla Leasing

 

[whitex]

What I meant is that Tesla IS the leasing company. I believe that some of the used cars that Tesla sells on the tesla.com website are actually lease returns that Tesla originally leased out, so they fall into the category of never been sold before, even though they are "used", not current year models, and have miles on their odometer.

As soon as the car is registered, as in it gets real (non mfg or dealer) plates, it's sold. Whether to you, or who ever is leasing the car to you, it's registered and only first ever registration is eligible for the federal rebate. That's it. There are some additional restrictions, for example in some states if the car has too many miles, even if it was never registered it's no longer eligible, but that restricts it more, not less. So, if the car you have has ever been registered with a DMV, it is not eligible for the federal rebate. Do note that even if Tesla is the leasing company, they would register the car to themselves as a leasing company in order to lease it to you, so they could and would claim the rebate. That said, Tesla is not a leasing company. They use others. Larger manufacturers setup leasing subsidiaries, for example Totoya/Lexus have Toyota Motor Credit Corporation. Tesla does not have such a subsidiary yet.