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exactly as well as them claiming a tax credit which is why they need to set limits on the tax credit that you need to own the vehicle for a year to be able to claim it. I just hope no one buys it otherwise things like this will continueI think what tonipepperoni77 means is that it's sad someone got a launch edition R1T who doesn't really want/need it.
Claiming the tax credit could be an issue, there is rule about it being purchased for use and not resale. They will also need to claim the short term capital gains from the sale. Between federal and California that could be close to 20k on the 60k profit, maybe more depending on the tax bracket. Would they get caught on either of these probably not but is it worth the gamble?exactly as well as them claiming a tax credit which is why they need to set limits on the tax credit that you need to own the vehicle for a year to be able to claim it. I just hope no one buys it otherwise things like this will continue
That is the IRS rule but low priority on enforcing it. More money in Muskovites.they need to set limits on the tax credit that you need to own the vehicle for a year to be able to claim it.
Except Congress gutted IRS funding for tracking down that money:That is the IRS rule but low priority on enforcing it. More money in Muskovites.
Buying and flipping the next day is different than resale. You need a reseller license for it to be a resale (but you are not subject to sales tax when purchasing the vehicle as a reseller). Federal government doesn't care who collects the credit as the point of the credit is to get more EVs in the market. The State is happy with the flip as they get sales tax income twice.Claiming the tax credit could be an issue, there is rule about it being purchased for use and not resale. They will also need to claim the short term capital gains from the sale. Between federal and California that could be close to 20k on the 60k profit, maybe more depending on the tax bracket. Would they get caught on either of these probably not but is it worth the gamble?
Even doing it legally, they still could net 40k on that sale, certainly a motivator for many people.
For me, I would rather have the Rivian.
In a tax audit point 6 could be critical. As I stated odds of being called on it is slim but this activity is clearly not in line with the spirit of this tax credit.Buying and flipping the next day is different than resale. You need a reseller license for it to be a resale (but you are not subject to sales tax when purchasing the vehicle as a reseller). Federal government doesn't care who collects the credit as the point of the credit is to get more EVs in the market. The State is happy with the flip as they get sales tax income twice.
California does have a 30-month ownership/lease requirement for their credits.
What does that mean? Tesla basher?That is the IRS rule but low priority on enforcing it. More money in Muskovites.
That finding EV'ers who sold their EV's shortly after purchasing them in order to claw back the $7,500 in EV tax credit is high cost and low return for IRS. Way more money in looking at someone like Musk who become the world's richest man after getting $10B in taxpayer breaks and subsidies but paid no income tax for the previous 10 years.What does that mean?