TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Form 8936 and Instructions for 2011 Tax Credit

Discussion in 'North America' started by S-2000 Roadster, Dec 11, 2011.

  1. qwk

    qwk Model S P2681

    Joined:
    Dec 19, 2008
    Messages:
    2,809
    I'm glad you got it worked out. It sucks to have an accountant not paying attention.
     
  2. Lloyd

    Lloyd Active Member

    Joined:
    Jan 12, 2011
    Messages:
    4,753
    Location:
    San Luis Obispo, CA
  3. hcsharp

    hcsharp Active Member

    Joined:
    Jun 7, 2011
    Messages:
    2,458
    Location:
    Vermont
    That's wrong. You have the wrong form. The business credit (not a deduction) is the same $7,500 except that it's limited by the Alternative Minimum Tax (AMT) while the personal $7,500 credit is not. In the case that you don't have enough income tax to absorb the whole 7,500, using the car mostly for business the first year can be a good way to carryover the unused credit to future (or back) years when you have more tax.
     
  4. Lloyd

    Lloyd Active Member

    Joined:
    Jan 12, 2011
    Messages:
    4,753
    Location:
    San Luis Obispo, CA
    Interesting, so the correct form is 8936?

    http://www.irs.gov/pub/irs-pdf/f8936.pdf
     
  5. hcsharp

    hcsharp Active Member

    Joined:
    Jun 7, 2011
    Messages:
    2,458
    Location:
    Vermont
    Yes for all Tesla automobiles. For business use you will also need Form 3800. It appears the IRS computer (or possibly manually) is doing a rudimentary check to make sure the VIN is for an EV or HEV.
     
  6. Lloyd

    Lloyd Active Member

    Joined:
    Jan 12, 2011
    Messages:
    4,753
    Location:
    San Luis Obispo, CA
    So, please let me confirm this with you as I am picking up a car (Toyota) on Monday, and it will affect how i take title! I have a tax loss carry forward and will loose the credit if I take title personally. I have an S corporation for my business. If I take title in my S corporation, I can use the credit to the extent, or percentage that the vehicle is used for business.
     
  7. hcsharp

    hcsharp Active Member

    Joined:
    Jun 7, 2011
    Messages:
    2,458
    Location:
    Vermont
    @Lloyd I'm about to run out the door so I don't have time to read the Code right now but I'm 95% certain it works like this: If you take title in your S Corp then the credit would flow through to the stockholders personally and would require the same allocation between personal and business. The business use portion of the credit would then carry forward presumably like your other credits. If there's significant business use (keep a mileage log) then this might be a better way to go than taking title in your own name. The AMT is probably the biggest enemy in your case. It's often hard to find somebody who's spread between AMT and regular tax is more than $7,500 (AMT only applies to business use portion of credit). Regardless, if you know you're going to lose the whole credit if you take title in your name, you don't have anything to lose if your S corp buys it. Again, didn't have time to read the actual IRC!

    - - - Updated - - -

    Another thought: Can your S-Corp accrue a year-end bonus to you that would create a tax liability for you? It wouldn't necessarily have to pay the bonus this year if it was accrued. You would need to document a resolution from the stockholders and/or officers to approve the bonus.
     
  8. Timothy

    Timothy Driving on Sunshine

    Joined:
    May 4, 2011
    Messages:
    278
    Location:
    Santa Barbara, CA
    I bought my car 4/30/2011. I filed my 2011 tax return on time with the form 8936 and was denied the $7500 by the IRS. No reason stated. I called, was told to wait a few months, called back. Nothing. Then my accountant called and was told to wait until mid October. So we will try again. I just reviewed all the data on form 8936 and it was correct. I pay plenty of taxes, so I should get the refund.

    I heard somewhere that early on buyers put the $$$ down for the car and didn't put the car on the road for a year or two as the car was not delivered right away and that you have to pay and register and drive in the same year that you are applying for the tax credit. Clearly I did all that correctly.

    So we will see what happens. Has anyone else been denied their $7500 when they qualify?
     
  9. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

    Joined:
    Mar 8, 2012
    Messages:
    12,539
    Location:
    Texas
    I wasn't denied, just audited :-(, but when I purchased the 2004 Prius the rules were that the in-service date had to be the same year that you claimed the deduction. This is proved by the vehicle's title.
     
  10. ElSupreme

    ElSupreme Model S 03182

    Joined:
    Jan 13, 2012
    Messages:
    4,279
    Location:
    Atlanta, GA
    I know of two LEAF purchasers that had these problems. It took them almost a year to get their credit. But they were persistent and eventually got their credit.
     
  11. hcsharp

    hcsharp Active Member

    Joined:
    Jun 7, 2011
    Messages:
    2,458
    Location:
    Vermont
    I've heard of a number of cases where the IRS asked for proof of purchase. You have to mail them a copy of the bill of sale and the checks you wrote. I recommend filing a paper copy of your return (not electronic filing) and include those as attachments with your name and SSN on them. Write SEE ATTACHED on form 8936.
     
  12. bmek

    bmek Member

    Joined:
    Jan 8, 2012
    Messages:
    159
    Location:
    Monte Sereno, California
    I am filing my 2011 federal and state tax returns tomorrow, and will be filing for electric vehicles (Form 8834), alternative fuel vehicle refueling (Form 8911) and solar panels (Form 5695).

    My tax preparer, a CPA, does not have software for Form 8911 (electric vehicle charging stations) so I will be filing a paper copy.

    Does anyone have experience with the alternative refueling (Form 8911)?
     
  13. hcsharp

    hcsharp Active Member

    Joined:
    Jun 7, 2011
    Messages:
    2,458
    Location:
    Vermont
    Jeez... Two bad accountants in one thread. That's pretty poor.

    BTW why are you filing Form 8834? What kind of car is it?
     
  14. bmek

    bmek Member

    Joined:
    Jan 8, 2012
    Messages:
    159
    Location:
    Monte Sereno, California
    Form 8834 = Qualified Plug-in Electric and Electric Vehicle Credit for a Nissan Leaf and a Tesla Roadster 2.5 (2011).
     
  15. hcsharp

    hcsharp Active Member

    Joined:
    Jun 7, 2011
    Messages:
    2,458
    Location:
    Vermont
    No. It says right on the top of that form "Use this form to claim the credit for certain two- or three-wheeled vehicles or low-speed four-wheeled..."
    On the next line: "Claim the credit for certain other plug-in electric vehicles on Form 8936." The title of this thread.

    You can file an amended return to get the whole $7,500 credit. Get a new tax preparer first.
     
  16. bmek

    bmek Member

    Joined:
    Jan 8, 2012
    Messages:
    159
    Location:
    Monte Sereno, California
    My error, it was a Form 8936.

    We did file a paper form because the software did not support Form 8911.
     

Share This Page