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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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Do I get a write-off for leasing an eco car?

Customer Question

Do I get a write-off for leasing an eco car?
Submitted: 3 years ago.
Category: Tax
Expert:  Lev replied 3 years ago.

Lev :

Hi and welcome to Just Answer!
Yes - the tax credit is available.
You need to use form 8910 to claim the credit - http://www.irs.gov/pub/irs-pdf/f8910.pdf

Lev :

Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. The following requirements must be met to qualify for the credit:

--You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit;
--You placed the vehicle in service during your tax year;
--The original use of the vehicle began with you;
--You acquired the vehicle for use or to lease to others, and not for resale; and
--You use the vehicle primarily in the United States.

Customer :

So, I'd be the lessor, right?

Customer :

and do you know how much the write-off is?

Lev :

The tentative credit for the year, make, and model of vehicle is based on the manufacturer's (or domestic distributor's) certification of the credit allowable as explained earlier. Generally - that might be up to $8000.

Lev :

Tax credits are only awailable to car owners and not to people who lease. The vehicle owner, in addition, has to be the original owner.

Lev :

Use Form 8834 to claim the qualified plug-in electric vehicle credit and any qualified electric vehicle passive activity credits allowed for the current tax year.
http://www.irs.gov/pub/irs-pdf/f8834.pdf

Expert:  Lev replied 3 years ago.
Just in case you were not able to use the chat - I am switching to Q&A mode and porting the answer below.
Please feel free to communicate if you need any clarification or have other tax related issues.

Yes - the tax credit is available.
You need to use form 8910 to claim the credit - http://www.irs.gov/pub/irs-pdf/f8910.pdf

Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. The following requirements must be met to qualify for the credit:
--You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit;
--You placed the vehicle in service during your tax year;
--The original use of the vehicle began with you;
--You acquired the vehicle for use or to lease to others, and not for resale; and
--You use the vehicle primarily in the United States.

The tentative credit for the year, make, and model of vehicle is based on the manufacturer's (or domestic distributor's) certification of the credit allowable as explained earlier. Generally - that might be up to $8000.

Tax credits are only available to car owners and not to people who lease. The vehicle owner, in addition, has to be the original owner.

Use Form 8834 to claim the qualified plug-in electric vehicle credit and any qualified electric vehicle passive activity credits allowed for the current tax year.
http://www.irs.gov/pub/irs-pdf/f8834.pdf

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