Tax credit on salvage?

[tedsk]

Apologies if it was discussed earlier - couldn't find anything.
I'm curious - can I claim federal tax credit on salvaged title Tesla if it never was registered and I'm The first owner?

 

[harry]

I didn't find anything in the IRS instructions which addressed the condition of the vehicle. As long as it is a new car (i.e., you are the original owner) and you maintain ownership for a tax period it seems that it would qualify. Maybe not completely in the spirit of the rebate unless you plan to get it running.

Did it fall off the transport truck? (LOL)

 

[tedsk]

I saw one with very little miles and factory "plates" on auction. Thought it may never has been officially owned. So I asked. It was salvaged due to flood.
There were a lot (may be thousands) of absolutely new cars with zero miles on auctions after flood due hurricane Sandy on East Coast. Dealer lots were flooded.
So it could theoretically happen again -)

 

[Half Dollar Bill]

Trick is that you have to be the first owner and "put it in service ". If the car isn't drivable, it's not in service.
I'm also a little skeptical that you'd be the original owner. I'd get the vin and ask your local service center about the history.

 

[tedsk]

I understand this couldn't be guaranteed and couldn't be relied upon but at least it is theoretically possible.

 

[cpa]

You raise a good question. We probably need a keen legal mind to weigh in as to what constitutes taking title under state law, as these things are possibly different from state to state in this area. It is conceivable that the salvage dealer took title (even though the car was never placed in service. Clearly the lines are blurred.

You can always ask the IRS for a private letter ruling. Those are the next best thing to a sure bet.

 

[Yaro]

What's the VIN? I can run the carfax and tell you if it has a previous owner or not.

 

[tedsk]

I pulled carfax already - that one was owned. Very shortly after purchase though. Auction or insurance company possibly tried to make it look like brand new - being sold in Fremont and has "zero emission" tags on both front and rear.

 

[Yaro]

I pulled carfax already - that one was owned. Very shortly after purchase though. Auction or insurance company possibly tried to make it look like brand new - being sold in Fremont and has "zero emission" tags on both front and rear.

2016 TESLA MODEL S, 19199369 | IAA-Insurance Auto Auctions

You won't get a tax credit for that. It will be considered used.

 

[Half Dollar Bill]

The note that the "vehicle is shrink-wrapped for protection against the elements" is ironic in light of the flood damage

 

[tedsk]

Funny indeed

 

[freeewilly]

Judging from the water mark on the rear seats, water raised to the waist high, and the media screen still works, it must be water proved
just curious, how much does it cost?