Federal tax credit question: selling used

[planet4ever]

I'd say the truth is somewhere in between what you and I are saying. True, you don't have to prove anything unless you are audited, and that will not happen until later. However, I would certainly expect the IRS computers to flag any return with a one-time $7,500 tax credit claim, and someone would be looking at a flagged return more closely. They might send you an information letter asking for the VIN, and if so, they would probably check it against DMV records.

Ray

 

[daniel]

Given that the tax code allows the $7,500 tax credit for buying the Leaf, and that it's probably on a form all its own that is just for EV purchase tax credits, I would not expect that by itself to trigger a flag, especially if there are not other unusual credits or deductions claimed. I doubt they're going to write to every purchaser of an EV and ask for proof you didn't buy the car for resale. I pay a lot of tax and my return does not look like someone piling up the deductions and credits to avoid paying.