4xe Tax Credit Question

[Mason1646]

If you sell your 4xe before the end of the calendar year in which you bought it (before you submit your taxes) do you still get the $7,500 federal credit?

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[RAMSTEEL]

Yes, the original purchaser only. The sad thing is folks were buying them and flipping them immediately (200 miles on the OD) while the new buyers were unaware they would not get the tax credit.

The first new sale of the vehicle triggers the counter for the manufacturer and only once. I think the incentive cut-offs after 200,000 units are sold.

 

[IdahoJOAT]

Did you pay taxes on it? Then I'd say yes.

 

[BCool]

Did you pay taxes on it? Then I'd say yes.

Sales tax paid has nothing to do with it. Technically, if your trade-in value was equal to or higher than the 4xe price, you would pay no sales tax...yet still be eligible for the tax credit.

 

[Bmeister]

Yes, the original purchaser only. The sad thing is folks were buying them and flipping them immediately (200 miles on the OD) while the new buyers were unaware they would not get the tax credit....

That's true and the scary part for both parties is that if the second owner files and applies the credit, it should easily trigger an IRS audit for the first AND second owner.?

If both owners take the $7500 credit on form 8936 when filing, the same VIN has to be entered so one or both filers might get have a nice visit with the IRS in the coming year(s) to determine who really is the first owner. It's going to be the unfortunate, unwitting second owner in that scenario receiving the full-rectal experience.

 

[RAMSTEEL]

Yes, and I hate the fact that dealers are hush on it. If you ask, they'll answer but they certainly don't volunteer a "new" Jeep with 200 miles on it does not qualify. I know the burden is on the purchaser but the information should be provided to avoid an upset or misinformed buyer. Take the high road dealers

 

[GATORB8]

Agree, yes. But the IRS does require “not purchased for resale”.

 

[Smunro622]

Just bought a 4XE this week and the sales guy asked are you buying or leasing as it makes a difference on how i can apply the tax credit. Lease the $7500 comes off the price of the lease. If you purchase you get the $7500 tax credit, my sales guy was super smart about this. He he said you get the 110 charger do the charge point device for $750 and our local electrical provider gives us a $500 rebate after the charger is installed… The condition is that you agree to setup charging from 10 pm to 7 am 7 days a week for over half the costs of electrical. All around my sales person was awesome.

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