You won't find me saying this too often on this forum, but here goes:
you are totally right and I'm totally wrong.
I was vaguely recalling hearing that there was a rule that you lost the credit (had to recapture it) if you sold the car within a certain time period. I thought I found it and stopped reading -- literally mid-sentence. Well done. thanks.
you are totally right and I'm totally wrong.
I was vaguely recalling hearing that there was a rule that you lost the credit (had to recapture it) if you sold the car within a certain time period. I thought I found it and stopped reading -- literally mid-sentence. Well done. thanks.
Aren't you ignoring the "and knows or has reason to know..." part?
Anyway if we keep reading:
(ii)Exception for disposition. Except as provided in paragraph (b)(2)(i)(C) of this section, a sale or other disposition (including a disposition by reason of an accident or other casualty) of a qualified electric vehicle is not a recapture event.
This is not legal or tax advice. But the way I read it, transferring a totaled EV to insurance will not trigger recapture. Parted out? Not a problem. Even if someone buys it at auction and drops an ICE into it, the taxpayer doesn't know that and has no reason to know that.