Submitted by npcorvino on Thu, 2020-02-20 09:08
Just a heads up. Filed my 2019 Federal Tax Return and what a surprise. We purchased our Model 3 in Sept 2019. We were expecting a tax credit of $1875 for the vehicle. Tesla tax credits are being phased out. With that in mind be prepared for the IRS to reduce the $1875 by 25%. IRS Form 8936 line 4B explains the reduction:
Enter 100% unless the vehicle was a vehicle with at least four wheels manufactured by Tesla or General Motors (Chevrolet Bolt EV, etc.).
Tesla. Enter the following percentage if the vehicle was manufactured by Tesla.
100% if you purchased it before January 1, 2019.
50% if you purchased it after December 31, 2018, but before July 1, 2019.
25% if you purchased it after June 30, 2019, but before January 1, 2020.
I went from a refund to paying. Oh joy!!