FOO EV tax credit and tax recapture if vehicle is sold
I initially made the $5250 deposit for the FOO with no expectation to resell the car shortly after purchase. However, it has been over a year and things have changed. If I sell the vehicle shortly after receiving it and I take the $7500 tax credit, does anyone know if the credit would need to be paid back to the government due to some recapture requirements? For example, the car must be owned for 3 years before the credit doesn't need to be repaid if the car is sold. I found mixed results on the internet and was interested in what forums members thought.
It's kind of a gray area. Technically, you are not supposed to purchase the vehicle with the intent to resell it. However, if someone decides to sell it after purchase, there is no minimum time requirement for ownership in the tax credit instructions. If you don't take the $7500 federal tax credit, the next owner will not be able to claim it either since it will not be a new car. You might as well take the tax credit. https://www.irs.gov/instructions/i8936
Fisker Ocean One #2185 VIN 4947 | Mariana | MaliBlu | 22” F5 Black AirGliders | 7/9/22 Order | 3/13/23 Lock
2018 Tesla Model 3 LR RWD | 2020 Volvo XC60 Inscription | 2015 Nissan Murano SL | 2012 Chevy Volt (no longer own)
Stock ownership disclosure: Long positions on FSR, QS, RIVN, SLDP, TSLA