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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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If you have a credit for an electric vehicle which exceeds

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If you have a credit for an electric vehicle which exceeds your tax in 2013, must you carry the excess back one year or can you elect to carry forward only.? If so, would you include a statement in your return to forgo the carryback period as you would in the case of an NOL?

Megan C :

Thank you for your question. My name is XXXXX XXXXX I would like to help you today

Megan C :

According to form 8936, which is used to take the qualified plug in electric vehicle credit,

Megan C :
If you cannot use part of the personal portion of the credit

because of the tax liability limit, the unused credit is lost.

The unused personal portion of the credit cannot be

carried back or forward to other tax years

Megan C :

So, you would not be able to carry back the credit or elect to carry forward the credit

Megan C :

If your tax liability is below the credit, you lose it

Megan C :

You can get a link to the tax form I referenced, HERE

Customer:

I do not agree. What it says on the form is that you can't carry back the credit beyond the first year the credit was available. But you can carry it forward. I wanted to know if you could simply elect to carry forward. I do not see anywhere on the form where you are limited only to the tax liability in the year of the credit.

Megan C :

Which form are you looking at - I am looking at form 8936

Customer:

So am I

Megan C :

On page 4, Line 23 it reads "If you cannot use part of the personal portion of the credit


because of the tax liability limit, the unused credit is lost.

The unused personal portion of the credit cannot be

carried back or forward to other tax years

Customer:

Actually, you have to go to Form 3800 where the credit must flow.

Megan C :

Okay so this is a business credit, not a personal credit correct?

Customer:

Yes

Customer:

It flows through an S corp.

Megan C :

Okay then if you wanted to elect carry forward, you would just attach a statement electing to carry forward

Customer:

OK thanks

Megan C :

You're welcome. Is there anything else I can assist you with today?

Megan C :

If not, please rate me positively so that I may receive credit for assisting you today

Customer:

Not right now. I will rate you positively.

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