2023 EV Tax Credit & Co-Owners/Co-Signers

Forum|Forum|3 years ago
February 5, 2023
3 replies
22 views

My client is buying an EV (this month, Feb 2023) that meets the requirements for the $7,500 tax credit, however he is not eligible to take the credit due to AGI being over the MFJ $300,000 threshold. He is wanting to know if he can include his Father as a co-owner on the title (EV is a cash purchase) so the tax credit can be taken by the Father. Car will be registered Fla (where my client lives) and Father lives in Virginia.

Going bonkers...I thought I came across IRS requirements that said owners had to live where the car is registered and owners had to drive the car in order to take the credit. I cannot find this reference...

Thank you!

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

The credit is for a qualifying vehicle that is "placed in service by the taxpayer" and is acquired for "use ... by the taxpayer".

IRonMaN

Level 15

The client pays for the car. The client lives in a different state than the father. Would you actually sign that return?

Slava Ukraini!

T

TaxGuyBillAnswer

Level 15

The credit is for a qualifying vehicle that is "placed in service by the taxpayer" and is acquired for "use ... by the taxpayer".

T

taxes96786

Level 8

This sounds like Dad can't take the credit. If he could you would have to allot his share of value to his return. He would not qualify because he is not using the car.

IRS says

To qualify, you must:

Buy it for your own use, not for resale
Use it primarily in the U.S

E

ea_rva aka acctgtaxmattersAuthor

Level 5

Thanks to all for the replies. I knew in principal and theory that it could not be taken given all the facts as they are. Client saw a TT thread that was very similar to their situation and the tread said credit could be taken by the father. I could not find specific IRS qualifications for this and was just wanting to make sure there wasn't anything beyond: buy it for your own use, not for resale and use primarily in the U.S.

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