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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I BOUGHT A TESLA IN 2013 AND TOOK THE 7500 TAX CREDIT. I

Customer Question

I BOUGHT A TESLA IN 2013 AND TOOK THE 7500 TAX CREDIT. I SOLD THE CAR ON 9/15/15. DO I NEED TO RECAPTURE THE TAX CREDIT?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: ?
JA: What confuses you?
Customer: I TOLD YOU MY QUESTION. DO I HAVE TO PAY BACK THE TAX CREDIT OF 7500 I RECEIVED FOR BUYING AN ELECTRIC CAR. I SOLD CAR. DOES IRS WANT CREDIT BACK?
JA: Is there anything else important you think the Accountant should know?
Customer: NO
Submitted: 2 months ago.
Category: Tax
Expert:  emc011075 replied 2 months ago.

Hi. My name is ***** ***** I will be happy to help you.

There's no actual repayment requirements unless you know that you are going to change it from electric. But one of the credit requirement is that the tax credit isn't applicable to an electric vehicle being purchased for the purpose of reselling it. This is a gray area since the IRS does not specify holding period. If you sold it after two years and the IRS somehow finds out, they may question if you were eligible to take the credit at the first place. Personally I do not think you will ever have an issue or the IRS somehow finds out and question it, unless the buyer issue you some kind of tax form and/or your accountant claim capital gains on sale.

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